Who is offering 1.9% car loan out there?

 

USAA is as low as 1.2%- 1.45%
Pen Fed is 1.49% for 60 months

ChuckJ

 

Thanks Chuck, those are great interest rate

 

how come people always talk about leases as tax deductions but fail to mention lease-inclusion which offsets the deductions? you are not supposed to write off the whole lease amount, btw even if it's a company car. might as well cheat on your charitable contributions too

 

I'll start by saying I agree with the above in financing is usually the way to go if you are not buying it outright.

I always debate this question when I look at a new car because I do turn them over quickly (6mo-4yrs). I recommend you do as I do and run the tables... I run amortization tables of 5,6, 7 yr finance terms with the interest rate they offered compared to the lease, they provide the terms of the lease( downpaymt, lease factor, residual value, and various term limits). Then you can look at when you think you will dump the car and compare money in to value left( if financed). I always go for no money down, or as close to that as I can get, as many miles as I can afford if leasing, and then the lowest monthly payment. Remember down payments in a lease are only lowering your monthly payments, not changing the residual on the car. So it's out of pocket now or spread out over the term. I like spreading it out and working my money.

I plan on keeping my '13 C2S cab for 4 yrs, so financing it at 2.9. ( best at time) made the most sense as the monthly payment was $200 more than lease, but loan was only 24k at the end of 4 yrs on a $129k note with no money down.

 

While I am not a CPA, it is my understanding that the tax law on business auto leasing changed a few years back capping how much you could deduct which made the purchase or lease of an expensive car such as a Porsche essentially the same as far as tax ramifications are concerned. I paid $15k down and financed mine at the US Federal Credit Union for 2.1%. And, I drive my DD cars way too many miles to lease anyway; ~ 25k miles per year. I already have 7k miles on my 3 month old 991s.

 

This.......

Also for people like me who live in CA and rotate through cars like underwear, sales tax Kills us. If I kept "buying" (financing) and selling cars every year, the good ol state of CA would be collecting a nice wad of tax $ from each transaction.

I think your CPA is the one who can accurately do the math for you, especially since you own your own business.

 

Debating buy vs lease myself. I think since I'm looking at my first 911, lease would allow me to try the car for a few years and decide if it's a car I want longterm. Plus if something changes and I need something more practical later I can change it at lease end. The alternative I was considering was to get a good deal on a CPO 997 c2s and upgrade to the 991, or another car, in a few years.