Did You Buy Or Lease?
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I am purchasing. The only time I ever leased, I was able to write it off as a business expense. Out of curiosity, how long is your lease and how much is the buyout option at the end of the lease.
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Leasing doesn't make sense for me. It would cost more.
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Join Date: Mar 2015
Location: Enumclaw, Washington U.S.A.
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I get around this by leasing for the first half of the purchase and then buying the car in stead of turning it in. The mileage doesn't matter if you buy out your own lease at the end.
The cheapest money is on the lease because it is subsidized by the manufacturer. you can end up paying less than 1.5% interest on the first half of what amounts to a $100,000 loan. The residual will be around 50% of the car's initial value.
Also on a lease you are not financing the sales tax which is a substantial amount here in Washington. And if you are self employed you can write of the lease payments.
Then on the second half, you can get a credit union loan on your own used car, or often the leasing company will offer financing for a lease end purchase.
This to me is the cheapeat way to buy a car in this price range.
The cheapest money is on the lease because it is subsidized by the manufacturer. you can end up paying less than 1.5% interest on the first half of what amounts to a $100,000 loan. The residual will be around 50% of the car's initial value.
Also on a lease you are not financing the sales tax which is a substantial amount here in Washington. And if you are self employed you can write of the lease payments.
Then on the second half, you can get a credit union loan on your own used car, or often the leasing company will offer financing for a lease end purchase.
This to me is the cheapeat way to buy a car in this price range.
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I leased. I used to always buy, then I went through 3 cars in less than 6 years. Realized it was a hassle to have to sell/trade-in a car every 2 years. Leasing makes sense for me since I don't plan on keeping it, want the convenience of just turning it in. And I don't need that many miles. My lease is 12K/year, probably end up putting 9K on it with some extended trips.
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I get around this by leasing for the first half of the purchase and then buying the car in stead of turning it in. The mileage doesn't matter if you buy out your own lease at the end.
The cheapest money is on the lease because it is subsidized by the manufacturer. you can end up paying less than 1.5% interest on the first half of what amounts to a $100,000 loan. The residual will be around 50% of the car's initial value.
Also on a lease you are not financing the sales tax which is a substantial amount here in Washington. And if you are self employed you can write of the lease payments.
Then on the second half, you can get a credit union loan on your own used car, or often the leasing company will offer financing for a lease end purchase.
This to me is the cheapest way to buy a car in this price range.
The cheapest money is on the lease because it is subsidized by the manufacturer. you can end up paying less than 1.5% interest on the first half of what amounts to a $100,000 loan. The residual will be around 50% of the car's initial value.
Also on a lease you are not financing the sales tax which is a substantial amount here in Washington. And if you are self employed you can write of the lease payments.
Then on the second half, you can get a credit union loan on your own used car, or often the leasing company will offer financing for a lease end purchase.
This to me is the cheapest way to buy a car in this price range.
#17
The following 2 users liked this post by Unhingd:
DuhCar (05-03-2015),
F-TypeRookie (05-03-2015)
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Dealership reduced the cap by almost $5K and the factor used for the residual was slightly over 50%
I selected 10K miles per year as I customarily drive the "third car" around 8,500 annually.
If you sell your car for an amount that exceeds the residual, at the end of the lease, you can pay off the residual and pocket the delta.