View Poll Results: Do you lease, finance or pay cash for cars?
Lease
7
8.86%
Finance
15
18.99%
I own my cars, CASH!
57
72.15%
Voters: 79. You may not vote on this poll
Do you lease, finance or pay cash for your cars?
Jan 24, 2011 | 01:32 PM
#71
Teamspeed's Howitzer
Joined: Oct 2009
Posts: 12,273
+1 to what you said Jeff. However with regards to 'ownership' we're talking about legally, not your bank account. And yes, the CPA does b/c if it's done via a business you can write it off.
2 (or 3) seperate issues.
How are you going to use it?
Whats the most effective way to aquire it?
Who or what am I (the person who signs for it) liable for?
2 (or 3) seperate issues.
How are you going to use it?
Whats the most effective way to aquire it?
Who or what am I (the person who signs for it) liable for?
Jan 24, 2011 | 01:37 PM
#73
Teamspeed Pro
Joined: Jan 2008
Posts: 6,031
From: Chicago, Il
^^^
Shouldn't one be deciding how to purchase a car based on what makes the most financial sense for that specific acquisition and their specific financial situation, rather than being concerned with how it is being labeled by anyone else? Does your bank account, or your CPA care whether it is considered owned, rented or borrowed?
Owning a car is nearly always a bad investment, in the strictest sense of the word, so shouldn't we be discussing how best to minimize your loss over the term of ownership? The total cost of ownership divided by the # of months owned is what we should be looking at when deciding the best way to purchase a car, and any of the three can be the best based on your specific circumstances.
Shouldn't one be deciding how to purchase a car based on what makes the most financial sense for that specific acquisition and their specific financial situation, rather than being concerned with how it is being labeled by anyone else? Does your bank account, or your CPA care whether it is considered owned, rented or borrowed?
Owning a car is nearly always a bad investment, in the strictest sense of the word, so shouldn't we be discussing how best to minimize your loss over the term of ownership? The total cost of ownership divided by the # of months owned is what we should be looking at when deciding the best way to purchase a car, and any of the three can be the best based on your specific circumstances.
very well put
Jan 24, 2011 | 01:47 PM
#74
Teamspeed Pro
Joined: Jan 2008
Posts: 4,528
From: New Jersey
+1 to what you said Jeff. However with regards to 'ownership' we're talking about legally, not your bank account. And yes, the CPA does b/c if it's done via a business you can write it off.
2 (or 3) seperate issues.
How are you going to use it?
Whats the most effective way to aquire it?
Who or what am I (the person who signs for it) liable for?
2 (or 3) seperate issues.
How are you going to use it?
Whats the most effective way to aquire it?
Who or what am I (the person who signs for it) liable for?
Jan 24, 2011 | 01:52 PM
#75
TEAMSPEED.COM
Joined: Jan 2008
Posts: 14,842
Agree with Jeff.
Although personally, I love being labeled rich. I always introduce me and whatever skank I am bringing to dinner parties as "I'm Biff and this is Muffy" usually followed by talking about some country club nobody's ever heard of. And I buy tiny Lacoste alligators in bulk and glue them on to all my clothes. But at least I own them.
Although personally, I love being labeled rich. I always introduce me and whatever skank I am bringing to dinner parties as "I'm Biff and this is Muffy" usually followed by talking about some country club nobody's ever heard of. And I buy tiny Lacoste alligators in bulk and glue them on to all my clothes. But at least I own them.
Jan 24, 2011 | 02:10 PM
#76
Rolex Fanboy
Joined: Feb 2008
Posts: 8,638
From: In a dream....please don't wake me
Interesting to note that many ppl forget; with leasing your downside of the transaction is protected. Meaning you're not exposed to depreciation or a market shift on the car. Clearly it depends on what you can/should do with your money. But knowing your monthly expenses on such a depreciating object - and being protected, is a huge plus.
Assuming a person who leases cannot pay cash would be HIGHLY naive. Especially with a MB/BMW/Audi/Porsche etc client.
The same point can be drawn for a person who spends $40,000 cash on a car. In most cases they can easily afford a $120k+ car. Its just a matter of priorities and 'perceived value' for that particular client.
I guess what shocks me most is how MANY people have very little understanding of how a lease works. And leasing has been around for about 3 decades now for cars.
Assuming a person who leases cannot pay cash would be HIGHLY naive. Especially with a MB/BMW/Audi/Porsche etc client.
The same point can be drawn for a person who spends $40,000 cash on a car. In most cases they can easily afford a $120k+ car. Its just a matter of priorities and 'perceived value' for that particular client.
I guess what shocks me most is how MANY people have very little understanding of how a lease works. And leasing has been around for about 3 decades now for cars.
^Good points
I think the biggest thing most gain from leases is the convenience of turning the car back in at the end of the term, not having to deal with selling/trading, and getting something new. I know that's a big reason my dad usually leased his company cars (cash for personal cars) for 2 yrs. Otherwise he'd have been trading every 6mos
When it comes to financing, with many of the offers manufacturers are throwing out there, generally people are finding that the money is so cheap their cash is better used elsewhere. With 0.0%-1.9% available from several different brands, it makes more financial sense if you don't mind making a monthly payment. Also have to think about how long you'll keep the car. Not having to deal w/ a monthly payment is nice though.
I think the biggest thing most gain from leases is the convenience of turning the car back in at the end of the term, not having to deal with selling/trading, and getting something new. I know that's a big reason my dad usually leased his company cars (cash for personal cars) for 2 yrs. Otherwise he'd have been trading every 6mos
When it comes to financing, with many of the offers manufacturers are throwing out there, generally people are finding that the money is so cheap their cash is better used elsewhere. With 0.0%-1.9% available from several different brands, it makes more financial sense if you don't mind making a monthly payment. Also have to think about how long you'll keep the car. Not having to deal w/ a monthly payment is nice though.
I typically pay cash for my cars; however, I jumped at the opportunity to finance my Wife's car over 60 months at 0% interest through GMAC.
Why would anybody pay cash in that situation? It's free money--money that could be put to work for you.
I also understand why some people lease. In some cases, with the lease payment being fully written off through a business, it greatly reduces the cost of having a vehicle.
Why would anybody pay cash in that situation? It's free money--money that could be put to work for you.
I also understand why some people lease. In some cases, with the lease payment being fully written off through a business, it greatly reduces the cost of having a vehicle.
If I am not mistaken - technically it is "your" car over the term of the lease. Reg is in your name while leasing co holds title (forgive me I may be a little rusty on my car-sales world knowledge). You assume responsibility for everything related to the car, they get to deal with the depreciation. You also get to write off part of it if it's in the company name.
In the case of many cars, leasing is way smarter than buying. Look at it this way: You have a Range Rover Supercharged for your daily. You change dailys every 2 or 3 years. Instead of buying it with your cash, you lease. You pay $1xxx/mo for 24 or 36mos. Car depreciates like a meteor falling from the sky which it does. Instead of losing your ass on resale/trade, you turn it over. This applies to all of the cars in that league - especially the expensive MBs, Audis, BMWs which are depreciation machines. I'm guessing the Panamera will fall into this category as well. So if "driving someone else's car" saves you 10k+ when you're done with it, then I'd gladly "drive someone else's car".
Pretty sure financing above 0.0% to around 2.9% is free money here if you factor in inflation as well.
In the case of many cars, leasing is way smarter than buying. Look at it this way: You have a Range Rover Supercharged for your daily. You change dailys every 2 or 3 years. Instead of buying it with your cash, you lease. You pay $1xxx/mo for 24 or 36mos. Car depreciates like a meteor falling from the sky which it does. Instead of losing your ass on resale/trade, you turn it over. This applies to all of the cars in that league - especially the expensive MBs, Audis, BMWs which are depreciation machines. I'm guessing the Panamera will fall into this category as well. So if "driving someone else's car" saves you 10k+ when you're done with it, then I'd gladly "drive someone else's car".
Pretty sure financing above 0.0% to around 2.9% is free money here if you factor in inflation as well.
That was F'n funny. I hadn't planned on getting on TS today until I saw your response and I had to read wtf Cstroked was talking about. I've got no reps to give but will asap.
^^^
Shouldn't one be deciding how to purchase a car based on what makes the most financial sense for that specific acquisition and their specific financial situation, rather than being concerned with how it is being labeled by anyone else? Does your bank account, or your CPA care whether it is considered owned, rented or borrowed?
Owning a car is nearly always a bad investment, in the strictest sense of the word, so shouldn't we be discussing how best to minimize your loss over the term of ownership? The total cost of ownership divided by the # of months owned is what we should be looking at when deciding the best way to purchase a car, and any of the three can be the best based on your specific circumstances.
Shouldn't one be deciding how to purchase a car based on what makes the most financial sense for that specific acquisition and their specific financial situation, rather than being concerned with how it is being labeled by anyone else? Does your bank account, or your CPA care whether it is considered owned, rented or borrowed?
Owning a car is nearly always a bad investment, in the strictest sense of the word, so shouldn't we be discussing how best to minimize your loss over the term of ownership? The total cost of ownership divided by the # of months owned is what we should be looking at when deciding the best way to purchase a car, and any of the three can be the best based on your specific circumstances.
In the end it depends on what you are doing with the car. Banks do not Lease to individuals without their best interest at heart. Banks make Bank because people lease. Yes there will be stories like the Pontiac story that banks lose some but in the end they make a lot of money off of people that lease. Plain and simple.
Leasing will make sense if you are purchasing 1 car that you will use almost exclusively and you do the quick math. If your 24 or 36 payments total what should be close to normal depreciation and you still get a small write off then and only then does it make sense.
Leasing is an Avenue only for Porsche MB Audi etc to peddle their cars. Without creative financing only 10% of the country will walk into their dealerships and write a check for their HIGHLY OVERPRICED products. Bank loans are close to the same but in the end I suspect some marketing guru years ago decided calling it a Lease (renting) verses the God awful permanent term "Car Loan" was more attractive to the typical car purchaser so they stuck.
Every 3 years or so I buy myself a new company truck. Every 3 years or so I find the truck I want and tell the dealer what I will write them a check for. They settle on my price and I then will ask them do they have any type of lease for these things. Of course I can take a look to see if Leasing payments come close. I've never leased because they NEVER have. Yes you get to write off your payments but you also get to depreciate your asset as well when you purchase out right. They are almost a wash, but in the end if the $hit hits the fan never once will I be troubled with a monthly payment that could take my precious company truck away. It's simplicity at it's finest for me and in the end I get to sleep better at night knowing I have no monthly burden.
Jan 24, 2011 | 02:10 PM
#77
Banned
Joined: Jun 2008
Posts: 4,846
Uhm, not really man- it is not your car. Thus why they can repossess and charge you for over mileage and abuse. As well as a jury in NY proved it's not your car when a passenger of a car successfully SUED the Leasing company after an accident.
You're paying to borrow the car. Pure and simple.
However yes, you do get to write it off if it's in a business name.
The only time a car is YOURS is if you finance or have paid cash. Leasing, no.
You're paying to borrow the car. Pure and simple.
However yes, you do get to write it off if it's in a business name.
The only time a car is YOURS is if you finance or have paid cash. Leasing, no.
¿En inglés, por favor?
Jan 24, 2011 | 02:59 PM
#79
Banned
Joined: Jun 2008
Posts: 4,846
LMAO...Your clients are the typical client that can't really afford the car. Yes you have some clients that are flush and have no problem with whatever payment they end up with but 75% of your clients are driving a car for Status and let's face it Stoppie American's buy status whether they can afford it or not. I would say of the 75% of these clients only really 50% of those can actually afford the car if they don't have a job. So my guess is only really 33% of your clients can actually afford their MB or Audi or Porsche without income and a heavily interest filled lease.
While I agree it's easier to turn the car in and walk away the FULL msrp you pay to obtain the 0% financing has interest built into it. Dealers will deal on pricing if you have no financing involved and very few will come down if you are trying for the 0%...I'd rather pay $5-8k less on a Sub---$100k vehicle than pay front loaded interest charges. You can always trade your vehicle in if you pay cash to save the headache of trying to sell it and as an added bonus in our state you get the 9% Sales Tax credit and you do not get this with a lease.
Again it's just front loaded interest GMAC is offering. I totally get the "why write a full check" theory here but if you pay an extra $5-10k up front you still lose the same in depreciation over 5 years and still have lost that extra $5-10k you over paid to begin with.
Again it's just front loaded interest GMAC is offering. I totally get the "why write a full check" theory here but if you pay an extra $5-10k up front you still lose the same in depreciation over 5 years and still have lost that extra $5-10k you over paid to begin with.
If you can get 5-8k less then take it. You may come out ahead if you finance with a bank anyway when factoring in inflation. This is where the buyer has to process the options and think (oh no!!!). As cheaply as banks had been offering financing - I saw as low as 3.4% on new cars - it may make more sense to take the rebates and finance elsewhere. I worked this out mathematically a few times and it costs less to do that, especially in instances where Porsche was offering 1.9% or an additional 10-15k off. You had to have a rate exceed 4.5% before it would cost you more.
As far as know many banks have stopped leasing. The only one that will lease here is USBank and it was a crapshoot between their programs and Audi/Porsche etc as to who would be better - so what I'm saying is empirical evidence suggests the odds are more 50/50.
Jan 24, 2011 | 03:08 PM
#80
Thor Liked My Watch
Joined: Dec 2008
Posts: 4,095
From: New Jersey
LMAO...Your clients are the typical client that can't really afford the car. Yes you have some clients that are flush and have no problem with whatever payment they end up with but 75% of your clients are driving a car for Status and let's face it Stoppie American's buy status whether they can afford it or not. I would say of the 75% of these clients only really 50% of those can actually afford the car if they don't have a job. So my guess is only really 33% of your clients can actually afford their MB or Audi or Porsche without income and a heavily interest filled lease.