who leases?

[hustler]

I never even considered lease before. I always thought after all that money, you have no car at the end of the lease.

But i just learn so much about how lease works. When you lease, you only pay for the amont of the car you are using at that time, verses paying for the full price of the car. In other words, You only pay for the depreciation of the car. If i leased a 40k$ car, for 3 years.. vrs buying a 40k$ car and sell it in 3yrs. 1. i dont have to worry about selling it, 2. I come out a little ahead becasue after 3 yrs, the car might only be worth like 28k, and if i leased it i would have only payed like 11-12k ANYWAZ. and at the end of the lease i can buy the car for the 28k its worth, and its liek a win win situation


Plus there is a tax-cut when you lease. Im just learning all this stuff, and wanta know of any of you know of any other benefits of leaseing or buying. Is there any draw backs of leasing?

Is buying worth it...

 

[drkeng]

I think that you can only get a tax benefit if your business leases the car. The IRS has rules about deducting driving expenses. I know that driving to your primary worksite is called "commuting" and is not deductible. Other driving may be; consult a tax expert. Also, I'm pretty sure that you have to pay sales tax on the full price of the car; that could be $2500-3000 on $40K car. and therefore $50-75 per month. Some leases also may quote a monthly price, but it doesn't include sales tax or a "capital cost reduction" amount. I had an Acura TL that I kept for about 4 years and traded in. I think my monthly cost ended up about the same as a lease. If I had sold the car privately, it may have been less than a lease. If you keep a car longer than 4 years, buying is probably better. Leasing seems appealing to drive a more expensive car than you might not really be able to afford or if you like getting a car every 3 yrs or so. For buying, consider credit unions for lower loan rates than are available from banks or thru dealers (except for those American .9% deals, but then look what you're driving). Look at the cost of 3 yr old BMW and see if you can find out how much it would have cost new and to lease for 3 yrs; to some degree prices haven't changed much over 3 yrs. Good luck.

 

[hustler]

i dont have a 3 yr old bmw. the salesman told me in 3 yrs my current 04 325Ci would be worth 28. i wanta trade in for a convert.

what a horrible resale.

 

[Militant-Grunt]

There are many hidden costs in lease, I found that out today when i went to get a quote on a 325i lease. BMW advertises 300bucks a month with a 2500 dollar payment. But today I find out there are other fees. Such as a bank fee. which i have compleately no clue to what that is, 1500 dollars in taxes. Im wondering why im getting taxed for something i dont own. And a refundable security payment. Another thing im wondering about, so in the end, it just seems logical to finance instead of lease, as you get to keep the car, and u dont pay a rediculous sum upfront. In the end its cheaper, but also its 30 something thousand down the drain.

 

[hustler]

i was told if i traded in my car and leased a convert., i pay less then half the tax on the new car, i can also transfer my extended warenty and clearcoat on the new car, and that it is the smartest way. Even if i was going to buy the car, he told me i shoudl lease it first and buy it after lease. It is same as buying it all upfront but it lust makes it easier to buy a 28k$ car vrs. a 40k$ car. And after 3 yrs of payments + down payment i only pay for what the vehicle had deprciated (something like 12k, makes sense)

He also explained if you buy it and not lease, its still not MINE. Its the banks until i pay it off. So its no different in a lease. Even though the car doesnt belong to me, it doesnt belong to me either if i financed it which makes sense as well. Plus, he said no one these days invest lots of money in cars that depreciate 51% in the first 4 years. Thats a big loss. Everyone invest in homes now, or lets it get interst in bank. Its retarted to put alot of money down on a car.

 

[drkeng]

Was looking at the ads today for leasing. Would have to check bmwusa site, but the price may not include all the options. For sure you pay tax on the "sale" price of the car when you initiate the lease and this could be reduced with a trade-in, just like when you buy. If you decide to buy the car at the end of the lease, you will pay the sales tax (again) on the residual value of the car--that seems odd, but I'm pretty sure about it, since you didn't really buy the car at the start--you paid the tax so the leasing company could buy the car and at the end you're buying a used car. I also noticed some kind of disposition fee at the end of the lease. Last I noticed that the BMW leases were for 10K miles/yr only. Don't forget that if you drive more.

I remember a few years ago leases were cheap because the leasing companies were giving high residual values to the cars, so you weren't paying as much. Then with all the leased cars coming on to the used car market, the residuals were lower and they lost money. They've adjusted to this, lowering the residual values.

Try this: ask for a monthly price that includes everything-car, tax, doc, and any other fees they charge at the beginning or end. Obviously, a security deposit could get refunded, but they could nail you for minor damage, like to the interior or whatever: I remember a friend getting a few hundred off his security deposit for some "damage" to his Lexus.