Hey everyone. This will probably get moved, but bear with me for a minute. No, I'm not planning on getting rid of my GS (at least not yet). But when I do, whether it be in 6 months, a year, or whenever, I will probably take advantage of my company's car program. For those of you who are good with numbers, let me know what you think.

It's a 48-month lease with 20,000 miles per year. I can pick any Ford or Mercury product I want. It's not free -- I would be responsible for an upfront downpayment plus monthly payments. The upfront downpayment depends on which car I choose. Let's assume I would take a Ford Explorer Limited or top of the line Mercury Mountaineer. The downpayment for either of those cars is $3,000, and then, over the life of the lease, here are the monthly payments: $100/month annual base pay salary reduction, and $115 per paycheck (2 paychecks per month). Because the year-end company bonus is tied to base pay, the $100/month salary deduction slightly cuts into the bonus. Anyway, after the downpayment, you're looking at about $330/month for the car for 48 months. Here's the kicker -- the monthly payment includes gas, insurance, all maintenance (including brakes, tires, windshields, etc.), and car washes. The only downside is that the benefit of having the car counts as taxable income based on the number of personal miles driven (I believe it's something like 20-30 cents per mile). Since I will be using the car purely for personal purposes, and I drive approximately 18,000 miles per year, I'm looking at about $3,000-$5,000 per year in income, or an additional $1,000-$1,500 in taxes.

I figure the gas, insurance, maintenance and car washes cover the $330/month payments, which leaves the downpayment plus the income ramifications. What does everyone think?

e

 

Keep your Lexus. Don't get that American crap. If you're going to trade in your car, at least upgrade not downgrade. Sounds like a good deal but there aren't too many American cars or cars in general that I would trade my GS3 in for.

 

ask your accountant... this isnt worth it, not worth canning your lex over anyway. youre gonna go through all this trouble you might as well just leat a car yourself and get whatever you want, and not take the hit in your bonus at the end of the year or deal with the tax situation.

 

I am an accountant. LOL. I just gave him my professional opinion.

 

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IMO, keep your Lexus. This lease doesn't sound like such a great deal. Keep your Lexus and drive it into the ground. Much better car and cheaper to keep her. Take that money that you would have spent on the downpayment and lease and INVEST it. Every month automatically have those payments deducted from your checking account and never touch it. Sit back and watch the money pile up. This is how you get rich.

I'm a big fan of The Vanguard Group. You can deal with them directly at www.vanguard.com.

Take a look at the STAR Fund, Index 500 Fund, or Total Stock Market Fund.

Good luck!

 

me too, but i didnt feel like bringing it up.

 

me too! haha its not worth paying money for a car you really don't want just cuz its a good deal. Thats what girls do, they buy crap they don't need just cuz its on sale. They're horrible savers, and as the financial advisor to my clients, don't tell your wife how much you make. haha