Thinking about buying a newish car

[G.Irish]

So what you're saying is.....leasing is the American way? Buying more than you can afford? :lol:

Not at all, because you aren't buying anything. Put another way, if you've got a business, maybe you'd lease office space instead of buying it because:

A. Your revenue may be better spent elsewhere
B. You don't want to be committed to the space/location long term

Another way to think about it is that you are paying for depreciation whether you lease or buy a car. The difference is that when you buy the car you are paying down principal as well. The thing with leases is that it only makes sense if the car's depreciation rate is low, or if the manufacturer subsidizes the lease deal (a la BMW and MB). You wouldn't want to lease something that has a hideous depreciation rate like a Hyundai/Kia.

[.RJ]

You wouldn't want to lease something that has a hideous depreciation rate like a Hyundai/Kia.

Well, unless you think you'd be paying less over the life of the lease than the car actually depreciates.

[WRXtranceformed]

So what you're saying is.....leasing is the American way? Buying more than you can afford? :lol:

Not at all, because you aren't buying anything. Put another way, if you've got a business, maybe you'd lease office space instead of buying it because:

A. Your revenue may be better spent elsewhere
B. You don't want to be committed to the space/location long term

Another way to think about it is that you are paying for depreciation whether you lease or buy a car. The difference is that when you buy the car you are paying down principal as well. The thing with leases is that it only makes sense if the car's depreciation rate is low, or if the manufacturer subsidizes the lease deal (a la BMW and MB). You wouldn't want to lease something that has a hideous depreciation rate like a Hyundai/Kia.

Right, I would never make the argument that leasing a car for a business is a bad idea. Because of the write off it's actually a better idea.

[Evan]

can you not write off a purchased car too?

the whole 'leasing so you can afford something better' rationale is as financially stupid (although not as damaging) as interest only mortgages and subprime loans.

[G.Irish]

can you not write off a purchased car too?

Yep, when you're writing off business equipment you write off the depreciation. So whether it's leased or purchased (outright or financed) you can deduct. I don't know if there are any differences in deducting the lease payment though. I might axe an accountant if I ever buy a business vehicle ("So, how much of this Ferrari can I write off?").

the whole 'leasing so you can afford something better' rationale is as financially stupid (although not as damaging) as interest only mortgages and subprime loans.

I'd say leasing a car is more like renting a house or apartment. You pay less than if you bought a property, which may allow you to live in a nicer place and/or a better location. But over time you're not building equity like you would if you bought. Since a car is a depreciating asset it's not quite as bad as the lease vs rent thing.

[.RJ]

the whole 'leasing so you can afford something better' rationale is as financially stupid (although not as damaging) as interest only mortgages and subprime loans.

I think the only equivalent there is a purchase with a balloon payment at the end.

[Apoc]

I bought my S4 with a balloon payment... and then sold it before it was due. :dunno:

[.RJ]

5.5 years into Ridgeline ownership... and its finally time to revolve that door, dog. A new record for RJ car ownership.

72k miles and its never given me any trouble. Going through the motions to get it ready for sale... just put new tires on it, have a few things to take care of and have it detailed. Probably have it on the market in about 2 weeks.

[Kaan]

i see a code reader in your future!

i'm voting 911 Pcar... but i know you wont listen.

[CaptainHenreh]

i see a code reader in your future!

i'm voting 911 Pcar... but i know you wont listen.

That's what I told him. He'll definitely get used to this view:

[.RJ]

[SlimKlim]

I'd take a Pcar with a CEL all day long over a Prius.

[Kaan]

it wont be a Pcar with a CEL lol

[.RJ]

Yeah, no full retard p-car. New thread next week when I get it home.

[HAULN-SS]

awwwwwwwwwwww =\

[Evan]

p-cars dont carry pedalbikes and lycra very well.

i bet its a different kind of CELwagen

[Kaan]

p-cars dont carry pedalbikes and lycra very well.

i bet its a different kind of CELwagen

[Evan]

roof racks are a pain in the ass and it looks like shit. I rest my case

[.RJ]

hitch rack > roof rack.

Not going to destroy my car and bikes driving into a parking garage.

[Apoc]

or across country?