Should I lease or should I buy?
04-12-05, 08:17 PM
#1
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Should I lease or should I buy?
I'm self employed, and my business is incorporated in California. Which is better for me?
1) lease the car from Lexus
2) buy the car under my name, and write off the "expense" of the monthly payments to my business? The credit union giving me the loan will not allow me to buy the car under the business. They would only do it under my personal name.
What are the advantages and disadvantages for leasing? Thanks in advance.
1) lease the car from Lexus
2) buy the car under my name, and write off the "expense" of the monthly payments to my business? The credit union giving me the loan will not allow me to buy the car under the business. They would only do it under my personal name.
What are the advantages and disadvantages for leasing? Thanks in advance.
04-12-05, 08:34 PM
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just went through same choices- my accountant said if you plan on keeping the car for a number of years its a wash whether you buy or lease- also depends on the amount of miles- if you're going to go over 15,000 /year it pays to buy...
04-12-05, 11:09 PM
#3
MultiTasking Mom
r tyler, i am in the same boat - i chose to lease and write off the expense; i have multiple cars but i tend to own 1 as a "beater" (RX330 
, great car) and then lease the others. we do quite a lot of business in southern california, but we manage to keep within 15k per year on the 2 leased vehicles by using the RX for super long trips like skiing, etc.
a lot of people have misconceptions about leases - as mab mentioned, many times it is a wash when you compare it to owning/financing for 3 years and driving about the same mileage. most of the first 3 years is depreciation which cannot be recouped under lease or buy. but, if you want to keep the car for 5+ years, or you typically drive super low miles, buying is going to be the better option.
lease rates are competitive with financing, sometimes even better b/c lexus knows they will get the car back, make it a CPO and make even more money the 2nd time around. just make sure you shop around or ask your dealer to do it for you; i know that Lexus Financial is not that great right now on the new GS. if you want specific details; send me a PM.
if you are like me and love having a new car every few years, leasing is the way to go. it saves a lot of hassle and you don't have to pay sales tax on the part you don't "use". that sounds like not much, but for a car that is going for or near MSRP, that savings can be pretty good (in my case about $2500 good). i know for certain i want to upgrade to the 460 or 450h in 3 years, so it doesn't make sense for me to buy/finance.
hope this helps; and good luck with your decision - congrats on the your GS!
, great car) and then lease the others. we do quite a lot of business in southern california, but we manage to keep within 15k per year on the 2 leased vehicles by using the RX for super long trips like skiing, etc.a lot of people have misconceptions about leases - as mab mentioned, many times it is a wash when you compare it to owning/financing for 3 years and driving about the same mileage. most of the first 3 years is depreciation which cannot be recouped under lease or buy. but, if you want to keep the car for 5+ years, or you typically drive super low miles, buying is going to be the better option.
lease rates are competitive with financing, sometimes even better b/c lexus knows they will get the car back, make it a CPO and make even more money the 2nd time around. just make sure you shop around or ask your dealer to do it for you; i know that Lexus Financial is not that great right now on the new GS. if you want specific details; send me a PM.
if you are like me and love having a new car every few years, leasing is the way to go. it saves a lot of hassle and you don't have to pay sales tax on the part you don't "use". that sounds like not much, but for a car that is going for or near MSRP, that savings can be pretty good (in my case about $2500 good). i know for certain i want to upgrade to the 460 or 450h in 3 years, so it doesn't make sense for me to buy/finance.
hope this helps; and good luck with your decision - congrats on the your GS!
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