for those who leased
12-04-06, 07:21 PM
#31
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I don't agree and I've leased AND owned before.
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
The quote "A fool always parts with his/her money" comes to mind. You've got a lot of learning to do young woman. I am not even going to go into it.
12-04-06, 07:32 PM
#32
Lexus Champion
I don't agree and I've leased AND owned before.
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
Cars are so reliable now, especially the Japanese, that having a new car warranty is a 'belts and suspenders' proposition. It's nice to have but really not necessary if you take care of your cars.
People are in one camp or the other on this, so it's not worth arguing about.
I'm not a tax accountant, but a normal individual cannot write off a leased car on their tax return because they use it to go back and forth to work. I believe they have to have a business tax return to be able to deduct it (could be wrong). Not sure what you were deducting it for, but that's between you and Uncle Sam.
Last edited by Evitzee; 12-04-06 at 07:36 PM.
12-04-06, 07:45 PM
#33
I don't agree and I've leased AND owned before.
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
WELL PUT!
this is my first car i have leased, but i know people do lease cars every two years, they modd them out; turbos, coilovers, rims, tint, upgraded stereos, you name it they have done it and when the lease is up they return the car to stock and pay NO penalties.
So that is why i felt comfortable with leasing, it fit my needs and i could treat it as a "financed" car as long as there is "no permenent" damage.
12-04-06, 07:45 PM
#34
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I don't agree and I've leased AND owned before.
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
I do not want to drive the same car for 5, 6, 7, 8 years - I want the new car smell and a car under warranty. I want new technology, latest safety features, and better gas mileage.
I do not want to own a depreciating asset. Rule of thumb is own appreciating asset and rent/lease depreciating ones.
If the car I own is in accident, it's worth less and I don't want to lose value. If it's leased, I get it fixed via insurance and it's bank's responsibility. If it's "totaled" GAP will automatically cover me and the lease is cancelled so I walk away free and clear. On a lease I have option of keeping it, selling it, or returning it.
I leased my last 5 cars and up until last year I filed with W2 with write offs. I think tax breaks apply if you make certain amount and you have reason to use car for work? Not neccesarily because you own a business.
I have never been charged for any damages on my lease returns either.
On a LFS lease you can go up to 30k miles per year but at that point I'd recommend just buying the car unless you get reimbursed from your job.
(I once did a 20k lease as it's cheaper to pay up front than to get penalized after.)
12-04-06, 08:06 PM
#35
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For your information I'm a Sales Manager for a Jeep/Chrysler dealership selling over 300 cars a month. I'm financing 41,500 with no money down because I didn't trade the CL600 I had if I traded that car I would be financing less because if you trade a car in you only pay tax on what the difference is between what you get for your car and what you pay for the new car. So if you're trading a car worth $20k and pay $38k for the new one you only pay tax on $18k. Also if you lease you can sell the car or give it back early but you still have to pay the payments that you owe plust early termination penalty fee. Also if you decide to sell the car you have to pay tax on the amount that you didn't pay tax for when you originally leased. Also if you're in car business you should never pay retail for the car unless you're dumb I always pay invoice or little over. I got my $44k sticker car for $38,500 so I'm not really burried. Probably less than most people are on the forum. I'll bet I can get out of my car without loosing more that $3k right now and get into a new car with paying only a little tax. So if you look at it you were completly wrong in your previous post. Like I said before leasing is great for people that lease expensive cars(german cars) and for people with businesses so that they can write them off in their taxes and that's it.
12-04-06, 08:52 PM
#36
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Good for you, only 22 and on the DESK hard to believe, but possible. And you are at a Chrysler Dealership, makes sense. Looks like the laws are a lil different in CA w/the whole tax thing. Good price on you're car too, let me & everyone else know where to get 5500 off sticker. You know just as well as I that since you put 0 money down YOU'RE more than 3k in the hole unless you've paid extra on the principal. Oh and TMCC doesn't have an early p/o fee. Not even a turn in fee. ONLY fee is an ACQ fee. And you don't have to pay tax on your remaining balance. The person who buys it does. The early TERMINATION is ONLY if you RETURN the vehicle to Toyota. Terminate your lease early. There is a difference, and I do this everyday also. How's your guys' average's out there per deal?? I'm not trying to be hard on you, you know how all us "car" people are.
12-04-06, 09:13 PM
#37
This has been a good thread. But there seems to be lots of misconceptions about the 'benefits' of leasing. The whole concept of leasing is based on the premise that you only pay for the portion of the cars depreciated value for the time you lease it. But that means if you lease it for say, 3 years, you will be paying the highest rates of depreciation since we all know cars take the maxium dump in value the first few years of it's life. And if you lease you pay high monthly rates FOREVER as you transition from one new car to another. To those that absolutely have to have the latest and greatest I suppose that is just the cost of doing business. But very costly indeed over the course of one's life. But I only drive 8 to 10,000 miles a year. I was fortunate to be able to put a 60% down payment on my IS350 (mainly because I haven't had any monthly payments for the last 3 years on my other cars) and have only a 36 month loan. At that time I will own my IS free and clear and will then have five years or so of NO CAR PAYMENTS WHATSOEVER. I don't need a new car every couple of years, and if you choose your car well (performance, optioned correctly and a reliable car) you can enjoy it for many years before you need to trade up. So amortized over my expected ownership of eight years or so it will be relatively cheap. And certainly cheaper than the frankly exorbitant lease conditions posted on this thread.
Fortunately for the car manufacturers the customers have been conditioned to believe they must have a new car every three years or so, so voila, the product called leasing was introduced to the mass market. Leasing can have benefits if you can take a tax deduction for a business purpose, but most leases today are financially a bad deal for most casual users over the long term. It is the cost of being able to drive the most up to date car on the market. But it is an expensive option. The thought of having to spend up to a grand a month FOREVER on a car payment is depressing, but that is what most lessees are facing.
Folks are either in one camp or the other, but the sheer structure of a lease deal means you will be paying more for a transportation experience over the LONG TERM. You pays your money, and you takes your choice.
We, as a nation, have become 'payment minimizers' (such as leasing) vs 'wealth maximizers' (like ownership). We see this everyday, not only in cars, but in houses as well. It is all based on short term enjoyment before we move on to the next experience. We have become a nation of 'renters', and we all know intuitively that renting is always the most expensive way to go through life on a long term basis.
Fortunately for the car manufacturers the customers have been conditioned to believe they must have a new car every three years or so, so voila, the product called leasing was introduced to the mass market. Leasing can have benefits if you can take a tax deduction for a business purpose, but most leases today are financially a bad deal for most casual users over the long term. It is the cost of being able to drive the most up to date car on the market. But it is an expensive option. The thought of having to spend up to a grand a month FOREVER on a car payment is depressing, but that is what most lessees are facing.
Folks are either in one camp or the other, but the sheer structure of a lease deal means you will be paying more for a transportation experience over the LONG TERM. You pays your money, and you takes your choice.
We, as a nation, have become 'payment minimizers' (such as leasing) vs 'wealth maximizers' (like ownership). We see this everyday, not only in cars, but in houses as well. It is all based on short term enjoyment before we move on to the next experience. We have become a nation of 'renters', and we all know intuitively that renting is always the most expensive way to go through life on a long term basis.
12-04-06, 11:58 PM
#38
Lexus Diva
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I'm not saying leasing is the only and best way to go. It may be better for you to buy if you keep your cars for long time, drive a lot, or run your cars into the ground. I am saying that you should consider all your options and keep a open mind to other possiblities.
For example, Lexus has multiple security deposit lease and my payment lowered by $36 per month on my new '07 from my old '04. Over 3 years that's $1,296. I consider it as sort of investment for something I'm getting anyway. Had I put that money into... say a cd account I'd earn maybe 3%-5% at best? Add to that the MUCH better gas mileage and my insurance didn't really change I'm a lot better off getting a new car. Oh and I sold my leased '04 IS and made $1,700 profit. Not too shabby.
My accountant wrote off my miles for driving to clients homes, seminars/classes, bank, meetings, head regional office, etc - anywhere I drove for work. He also wrote off my registration but I think you can do that if you buy too?
Leasing isn't for everyone but it sure worked out great for me.
For example, Lexus has multiple security deposit lease and my payment lowered by $36 per month on my new '07 from my old '04. Over 3 years that's $1,296. I consider it as sort of investment for something I'm getting anyway. Had I put that money into... say a cd account I'd earn maybe 3%-5% at best? Add to that the MUCH better gas mileage and my insurance didn't really change I'm a lot better off getting a new car. Oh and I sold my leased '04 IS and made $1,700 profit. Not too shabby.
My accountant wrote off my miles for driving to clients homes, seminars/classes, bank, meetings, head regional office, etc - anywhere I drove for work. He also wrote off my registration but I think you can do that if you buy too?
Leasing isn't for everyone but it sure worked out great for me.
12-05-06, 07:10 AM
#39
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Ownership of a vehicle comes down to: What can I afford to loose every month. Cars are not an investment, they are a loss unfortunately.
Give the fact that I like to rotate cars out every 2-3 years, and that I do not want to tie up monies in a vehicle, is the reason why I have leased the last 15 cars. Leasing is not for everyone - there are limitations like everything. Yes purchasing the vehicle outright and keeping it for 7+ years is the best way to maximize your "investment", but I'm not into driving 4+ yr. old vehicles. I'm also I'm not interested in outright vehicle ownership, taking care of a vehicle after the warranty has expired, modifying the vehicle or putting large sums of money down.
Not saying my way is right, but if you fully understand what the Pros/Cons are in regards to Leasing/Purchasing, and apply them to how you want to structure vehicle ownership - their will be no mistake in your decision.
Give the fact that I like to rotate cars out every 2-3 years, and that I do not want to tie up monies in a vehicle, is the reason why I have leased the last 15 cars. Leasing is not for everyone - there are limitations like everything. Yes purchasing the vehicle outright and keeping it for 7+ years is the best way to maximize your "investment", but I'm not into driving 4+ yr. old vehicles. I'm also I'm not interested in outright vehicle ownership, taking care of a vehicle after the warranty has expired, modifying the vehicle or putting large sums of money down.
Not saying my way is right, but if you fully understand what the Pros/Cons are in regards to Leasing/Purchasing, and apply them to how you want to structure vehicle ownership - their will be no mistake in your decision.
Last edited by MLevinson; 12-05-06 at 10:34 AM.
12-05-06, 10:32 AM
#40
Intermediate
I lease every time...
...but I am self employed and write it off.
IS350 Premium $600.03/mo. 38k.
3yrs, 15k miles/yr....$0 down
I got my car the month after they came out, so deals were a little hard to come by, but it was a pretty good deal at the time. I'm sure I could do better
One thing to mention is that if you are a repeat Lexus leaser, they will almost always pay off your over miles if you have any at the end of the lease - and in a lot of cases, will take the car off your hands more than a year early so you can lease another one. Of course, this is if the car is in good shape and hasnt been in any accidents. Leasing is great, but isnt for everyone. I love having a new lexus every 3 years, and plan on sticking with the brand as long as they keep popping out nice cars.
IS350 Premium $600.03/mo. 38k.
3yrs, 15k miles/yr....$0 down
I got my car the month after they came out, so deals were a little hard to come by, but it was a pretty good deal at the time. I'm sure I could do better
One thing to mention is that if you are a repeat Lexus leaser, they will almost always pay off your over miles if you have any at the end of the lease - and in a lot of cases, will take the car off your hands more than a year early so you can lease another one. Of course, this is if the car is in good shape and hasnt been in any accidents. Leasing is great, but isnt for everyone. I love having a new lexus every 3 years, and plan on sticking with the brand as long as they keep popping out nice cars.
12-05-06, 10:47 AM
#41
I financed mine, but here's my sister's lease:
2007 IS250 AWD with Nav,LP. MSRP around 40,400, sale price, 37,000.
Down Payment: $1200
Monthly Payment: $545 before taxes
Lease Term: 36mo, 12k/year
2007 IS250 AWD with Nav,LP. MSRP around 40,400, sale price, 37,000.
Down Payment: $1200
Monthly Payment: $545 before taxes
Lease Term: 36mo, 12k/year
12-05-06, 11:30 AM
#43
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Exactly! Why in the world
Leased 06 IS350. $652/month 12k/36month lease. No money down.
Price 41,000. Sport/Nav/ML package. The 06 sport package includes the suspension upgrades, wheels, HIDs, rear spoiler. Said they'ii throw in satellite radio - 6 months and still waiting, I'm gonn give them hell on my first 5k oil service. Yeah, the lease prices are high for lexus. For the same $650 per month you can get into the BMW335i but I'm planning to keep the car afterwards. Lease a BMW, buy a Lexus
Price 41,000. Sport/Nav/ML package. The 06 sport package includes the suspension upgrades, wheels, HIDs, rear spoiler. Said they'ii throw in satellite radio - 6 months and still waiting, I'm gonn give them hell on my first 5k oil service. Yeah, the lease prices are high for lexus. For the same $650 per month you can get into the BMW335i but I'm planning to keep the car afterwards. Lease a BMW, buy a Lexus
12-05-06, 11:34 AM
#44
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Why woud anyone want to finance the taxes...? I sure wouldn't which is why I make the tax payment and 1st lease payment up front.