View Poll Results: Just wondering how many people lease or finance/own
I lease
41
19.90%
I own/finance
165
80.10%
Voters: 206. You may not vote on this poll
Just wondering how many people lease or finance/own
09-28-07, 05:48 PM
#46
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haha this is so true... you see these 80k-150k cars at so many houses worth no more than 2 times the value of the cars...I guess they just want to look wealthier...
09-29-07, 08:05 AM
#47
Lexus Test Driver
i lease and i am convinced its the best way to own/ rent a car. especially imports because they hold their value so well.
however a couple tips for thoes who want to knwo the facts.
1. i lease because i own a business and i can write the ENTIRE car payment, fuel , maintenence and anything car related off on my taxes and i dont track my miles for business use because i have another car for personal use.
2. leasing has prevented me from having to pay for any maintenence other than oil changes, i usually drive the cars about 25K miles and trade in so i never have any service brakes, tires ect.. to pay for.
3. lease payments are always lower than purchase payments, so i can get more car for less money.
4. i dont know about lexus but with all my Acuras i have always traded the car in about 1 year early from the end of the lease and always had EQUITY in the car, so i applied that towards my next purchase.
5. i never lease through anyone but the manufacturer finance company. i tried a lease through bank one and they front end loaded the lease so i ended up keeping the car for the full 48 months because i was upside down the whole time, they only paid the interest in the beginning of the loan so the principal never got any payments till the end BAD MISTAKE! now i use American honda finance and Lexus Financial Service. you will find manufacturers money always works best because they want you to return to buy another car and dont screw you over in the finance agreement.
6. Miles people always say they drive too many miles to lease BAHHH! every lease i have done has an allowance for miles your over if you run the full lease full term.
if you trade the car in early the miles dont matter at all. they just negotiate the trade in value of the car based on its miles and condition. what you still owe on the car is usually less if you take good care of it. the most i have ever been upside down is 1000 bucks, big deal!
now a couple things to consider if you have the patience, the time and are willing to do this.
i know i would have made out a lot better if i sold my leased vehicle in the paper when i was ready to trade in, i would have got about 3-4K more for the car to sell this way verses trading in.
dealerships make WAY more money on used cars verses new. if you can negotiate the new purchase down and have nothing to trade you always get a better deal. (i got my 350 fully loaded for $450 over invoice)
you have to pay the taxes on the lease if you sell it outright but its still a lot less than taking it in the *** from the dealer.
for me, i really dont care, if i have to pay a little extra to trade in verses sell outright i really dont have a problem with that, its a tax writeoff for me and i dont have the time or patience to fool around with selling a car. i can afford the payments and i can afford to spend a couple grand if necessary to make the transaction.
and finally, a poster mentioned doing a HELOC which is a good idea, however you can only get about 70% of that money written off on your taxes because its personal verses i write off 100% on my business taxes as an expense. but still not a bad way to go.
i see no reason to own somthing that looses value every time i use it when cars get about 50k miles on them their value really starts going down. most every person on this board has to admidt to themselves that even if they purchase, as soon as they own it what are they gonna do anyway? you got it, buy another car and have another car payment....
we are all car guys and we will always want the newer version of what you have now, there is always somthing new and exciting comming out and you know your going to want to get it.
the difference is that when you lease you dont have to negotiate the trade in value of the car. if it turns out that its not holding its value as expected, your protected in the lease, if you bought, your screwed!
so unless you drive your cars to the graveyard, you always pay more in a purchase because of the maintenence, additional cost to own and the fact you get no tax advantage if you own a business.
for me, i would be a fool to purchase.
however a couple tips for thoes who want to knwo the facts.
1. i lease because i own a business and i can write the ENTIRE car payment, fuel , maintenence and anything car related off on my taxes and i dont track my miles for business use because i have another car for personal use.
2. leasing has prevented me from having to pay for any maintenence other than oil changes, i usually drive the cars about 25K miles and trade in so i never have any service brakes, tires ect.. to pay for.
3. lease payments are always lower than purchase payments, so i can get more car for less money.
4. i dont know about lexus but with all my Acuras i have always traded the car in about 1 year early from the end of the lease and always had EQUITY in the car, so i applied that towards my next purchase.
5. i never lease through anyone but the manufacturer finance company. i tried a lease through bank one and they front end loaded the lease so i ended up keeping the car for the full 48 months because i was upside down the whole time, they only paid the interest in the beginning of the loan so the principal never got any payments till the end BAD MISTAKE! now i use American honda finance and Lexus Financial Service. you will find manufacturers money always works best because they want you to return to buy another car and dont screw you over in the finance agreement.
6. Miles people always say they drive too many miles to lease BAHHH! every lease i have done has an allowance for miles your over if you run the full lease full term.
if you trade the car in early the miles dont matter at all. they just negotiate the trade in value of the car based on its miles and condition. what you still owe on the car is usually less if you take good care of it. the most i have ever been upside down is 1000 bucks, big deal!
now a couple things to consider if you have the patience, the time and are willing to do this.
i know i would have made out a lot better if i sold my leased vehicle in the paper when i was ready to trade in, i would have got about 3-4K more for the car to sell this way verses trading in.
dealerships make WAY more money on used cars verses new. if you can negotiate the new purchase down and have nothing to trade you always get a better deal. (i got my 350 fully loaded for $450 over invoice)
you have to pay the taxes on the lease if you sell it outright but its still a lot less than taking it in the *** from the dealer.
for me, i really dont care, if i have to pay a little extra to trade in verses sell outright i really dont have a problem with that, its a tax writeoff for me and i dont have the time or patience to fool around with selling a car. i can afford the payments and i can afford to spend a couple grand if necessary to make the transaction.
and finally, a poster mentioned doing a HELOC which is a good idea, however you can only get about 70% of that money written off on your taxes because its personal verses i write off 100% on my business taxes as an expense. but still not a bad way to go.
i see no reason to own somthing that looses value every time i use it when cars get about 50k miles on them their value really starts going down. most every person on this board has to admidt to themselves that even if they purchase, as soon as they own it what are they gonna do anyway? you got it, buy another car and have another car payment....
we are all car guys and we will always want the newer version of what you have now, there is always somthing new and exciting comming out and you know your going to want to get it.
the difference is that when you lease you dont have to negotiate the trade in value of the car. if it turns out that its not holding its value as expected, your protected in the lease, if you bought, your screwed!
so unless you drive your cars to the graveyard, you always pay more in a purchase because of the maintenence, additional cost to own and the fact you get no tax advantage if you own a business.
for me, i would be a fool to purchase.
09-29-07, 03:52 PM
#48
Lexus Champion
i lease and i am convinced its the best way to own/ rent a car. especially imports because they hold their value so well.
however a couple tips for thoes who want to knwo the facts.
1. i lease because i own a business and i can write the ENTIRE car payment, fuel , maintenence and anything car related off on my taxes and i dont track my miles for business use because i have another car for personal use.
3. lease payments are always lower than purchase payments, so i can get more car for less money.
i see no reason to own somthing that looses value every time i use it when cars get about 50k miles on them their value really starts going down. most every person on this board has to admidt to themselves that even if they purchase, as soon as they own it what are they gonna do anyway? you got it, buy another car and have another car payment....
we are all car guys and we will always want the newer version of what you have now, there is always somthing new and exciting comming out and you know your going to want to get it.
so unless you drive your cars to the graveyard, you always pay more in a purchase because of the maintenence, additional cost to own and the fact you get no tax advantage if you own a business.
for me, i would be a fool to purchase.
however a couple tips for thoes who want to knwo the facts.
1. i lease because i own a business and i can write the ENTIRE car payment, fuel , maintenence and anything car related off on my taxes and i dont track my miles for business use because i have another car for personal use.
3. lease payments are always lower than purchase payments, so i can get more car for less money.
i see no reason to own somthing that looses value every time i use it when cars get about 50k miles on them their value really starts going down. most every person on this board has to admidt to themselves that even if they purchase, as soon as they own it what are they gonna do anyway? you got it, buy another car and have another car payment....
we are all car guys and we will always want the newer version of what you have now, there is always somthing new and exciting comming out and you know your going to want to get it.
so unless you drive your cars to the graveyard, you always pay more in a purchase because of the maintenence, additional cost to own and the fact you get no tax advantage if you own a business.
for me, i would be a fool to purchase.
3. This is true, but just by the definition of leasing (paying just for the depreciation on the new car for the time you rent it) it will, in the long run, be more expensive than buying. This is obscured by the low monthly payments which unfortunately go on forever as you never own the car. In your case, or for those that just have to have a new vehicle every two or three years, it is the most efficient way to go. But for most people not the most economical.
It all comes down to what is more important; driving the most vehicle for the monthly buck and having to pay forever, or being happy driving a vehicle for a period far longer than the typical lease. For the latter drivers, buying is the best option as even with maintenance you come out ahead as you can have four or five years with absolutely no car payments, which is money in the bank. And maintenance on most Japanese vehicles over a 150k mile period are manageable and aren't that great so it doesn't add much to the overall cost. So I would disagree that purchasing is always more expensive than buying because of maintenance. The argument today tends to hinge on monthly cost, and not the net cost over a long period. I don't agree we are all car guys and must have the newest version all the time. I buy smartly and keep my cars for seven or eight years. In my case buying is the best option, in your case leasing is the best.
There is no right or wrong answer to this question. It all depends on your needs and tax situation. But for people who can't write off a lease and cut the monthly cost by 30% (or whatever their incremental tax bracket is), the cheapest cost/mile to run a car is to buy a new car with outstanding reliability and drive it for an extended period. Unfortunately we have been conditioned to always want the 'latest and greatest', so we rent (lease) vehicles to accomplish this. We have become a nation of 'payment minimizers', not 'wealth maximizers'. This behavior is one of the foundations that set up part of the current real estate mess. The old adage, 'there is no such thing as a free lunch' does not go away because of a lease. Leasing always sounds like the cheapest way to go, but over a lifetime almost all people will have more money in the bank by buying.
Last edited by Evitzee; 09-29-07 at 03:59 PM.
09-29-07, 09:10 PM
#50
Lexus Champion
That's almost always more expensive. If you lease, then lease it and walk away. If you want to buy it, do that from the get go. That will be cheaper overall.
09-30-07, 08:02 AM
#52
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Join Date: May 2007
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Why do people who finance think they own the car, you dont own it, the bank owns it. And if you trade in your car before your finance term, you will take a big hit. A car is not an investment, its a toy.
The only people who own the car are people who buy the car outright(which is the optimum way you are suppose to buy a car). Finance or lease, you are the same boat
The only people who own the car are people who buy the car outright(which is the optimum way you are suppose to buy a car). Finance or lease, you are the same boat
09-30-07, 04:36 PM
#53
Why do people who finance think they own the car, you dont own it, the bank owns it. And if you trade in your car before your finance term, you will take a big hit. A car is not an investment, its a toy.
The only people who own the car are people who buy the car outright(which is the optimum way you are suppose to buy a car). Finance or lease, you are the same boat
The only people who own the car are people who buy the car outright(which is the optimum way you are suppose to buy a car). Finance or lease, you are the same boat
09-30-07, 04:58 PM
#54
Pole Position
Join Date: May 2007
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I financed my 250 RWD... I pay around $550/mo. whereas I'd be paying around $350 if I was in the US.
I paid a lump sum upfront, which is why my payments are relatively low.
I paid a lump sum upfront, which is why my payments are relatively low.
09-30-07, 07:12 PM
#55
Lexus Test Driver
Why do people who finance think they own the car, you dont own it, the bank owns it. And if you trade in your car before your finance term, you will take a big hit. A car is not an investment, its a toy.
The only people who own the car are people who buy the car outright(which is the optimum way you are suppose to buy a car). Finance or lease, you are the same boat
The only people who own the car are people who buy the car outright(which is the optimum way you are suppose to buy a car). Finance or lease, you are the same boat
10-01-07, 12:13 PM
#57
Intermediate
this is sort of true, but i've heard of lease companies actually negotiating the sales price at the end of the lease based on the vehicles current value. i used to have a jeep grand cherokee and at the end of the lease, they told me on the phone they would shave a couple grand off the price if i would buy it. they don't want to have to deal with it!
10-03-07, 02:30 PM
#58
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this is sort of true, but i've heard of lease companies actually negotiating the sales price at the end of the lease based on the vehicles current value. i used to have a jeep grand cherokee and at the end of the lease, they told me on the phone they would shave a couple grand off the price if i would buy it. they don't want to have to deal with it!
10-04-07, 06:19 AM
#59
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If you can pay for your car outright, then good for you. That said, let's not pretend that paying cash for an expensive and rapidly depreciating asset makes good financial sense. If you buy a car outright and then trade it in before its value is truly used, then you're wasting far more cash than anyone financing or leasing.
And to other poster if your house is not paid off, you do not own that house, stop making your payments and the real owner steps up to collect it
10-04-07, 08:45 AM
#60
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you are 100% wrong. I financed mine with Lexus financing for 5.6% (although I could have paid cash for it), my investments over the last 4 years have yielded from 20-40% return. You do the math.