Pickups the new Luxury Car?

[Zerk]

I think you have bought into the new common core crap or something.

Dollars are dollars.

Chris

Find a financial advisor who advocates it.

Why would they lease you a car, and then sell it to you for a loss? They are not selling it to you for it is worth when the lease is up.

 

[Zerk]

Dave Ramsey on fleeces
Broke people think ‘how much down and how much a month’. Rich people think ‘how much’.

 

[Tomtint]

There may be a few flukes, and I am not convinced there are, but as a rule fleeces are a mistake. Find an advisor that advocates them. Maybe there are deals on something they want to get rid of or some other reason. But they don't do them to lose money. The math doesn't add up. Read up on how they work.

I have never done one, but I am told they don't even give you the interest rate.

If you can't afford the vehicle without a lease, get a used one.

That is not accurate, We have leased numerous vehicles over the last 15 years. With a lease (business vehicle ) 100%. Is tax deductible. That is not the case if it is a straight purchase unless you take accelerated depreciation. Which has you getting rid of it every year at a huge cost. Our last lease was a 2012 Jeep Wrangler 4 door. 12k miles a year allowed, maybe 1500.00 at lease signing 39 month lease 430.00 a month. We sold out of the lease early at 34 months in and the dealer bought it from us.. We left the dealership with a 4200.00 check. That makes sense every day and twice on Sunday. If you do lease, you need to know what you are doing going in. And have a exit strategy going out. There are some very very good leases out there today.

 

[Zerk]

I don't know about businesses and depriciation, though you did say you can an accelerated depreciation, but for a normal person, not building equity is a loss.


As I said a few times, find a financial advisor who says to do it.

 

[esloser]

Unless you make a huge down payment, take a 3 year loan, or intend to keep the vehicle for awhile past the loan period, I think leases do make sense. You are never going to be on the right side of that loan unless you pay it off. In the meantime, you are paying a ton in depreciation + interest + tax on the whole sale price. With a lease you only pay tax on the monthly payment.

 

[Zerk]

Unless you make a huge down payment, take a 3 year loan, or intend to keep the vehicle for awhile past the loan period, I think leases do make sense. You are never going to be on the right side of that loan unless you pay it off. In the meantime, you are paying a ton in depreciation + interest + tax on the whole sale price. With a lease you only pay tax on the monthly payment.

I think the point is to pay it off. Like paying your house off. I don't want a payment every month of my life.

Even if you sell it before you pay it off, at some point it does flip and you have equity. You never have equity in a lease. Silly to say are never right side up.

 

[aarolar]

My goal is 500k on my truck no plans of selling here.

 

[Tomtint]

I think the point is to pay it off. Like paying your house off. I don't want a payment every month of my life.

Even if you sell it before you pay it off, at some point it does flip and you have equity. You never have equity in a lease. Silly to say are never right side up.

Again you are not correct, if you lease a vehicle that has good real world resale, and a under valued residual, you can have equity in a lease. Hence us leaving the dealership with a check for aprox 10 months of payments. You just need to be aware of your local market conditions for resale values. And be pro active in selling it if you want to get out of it.

 

[Zerk]

I am not a tax guy or business owner, just read this after googling it. I drive 25k+ miles a year for work and get IRS max per mile from my employer, around $0.55/mile. Many people can't do math, and think I am losing money. But actually it adds to my income.

Because of that I found the below item interesting. Also the link said if you drive over the limit leases don't work out.

*******************
You may be familiar with the idea that you may use either mileage or the Actual Expense Method to figure your vehicle expense. However, when leasing, you may only use Actual Expenses. It's still necessary to maintain mileage logs to determine what percent of the Actual Expenses you will be able to deduct.

For low mileage drivers, the leasing alternative often provides twice the benefit when compared to the standard mileage rate. So people often opt to lease. However, since you must track Actual Expenses when you lease, you may just as well do the same book- keeping and buy the vehicle for the price of a few extra hours of book-keeping, you will come out just ahead of the tax deduction for leasing.

I think you are coming to the conclusion that leasing is not the best tax alternative for moderately-priced vehicles. You're right! Frankly, I just can't figure out why anyone would lease a car and saddle themselves with payments forever.

The only time you really get a tax advantage from leasing is when you lease a hyper-expensive motorcar. If you are paying monthly lease fees of $500 or more, plug your costs into the examples above. Because the depreciation deduction is limited, the tax benefits are far higher when you lease a BMW, Eldorado, Mercedes Benz, or other high ticket car


Cars - Buying, Leasing, Taxes and the IRS | TaxMama | Free Tax Advice

 

[Zerk]

Again you are not correct, if you lease a vehicle that has good real world resale, and a under valued residual, you can have equity in a lease. Hence us leaving the dealership with a check for aprox 10 months of payments. You just need to be aware of your local market conditions for resale values. And be pro active in selling it if you want to get out of it.

Do you think you are out smarting the dealer?