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Another Lease vs Buying

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Old Nov 26, 2013 | 03:17 PM
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Another Lease vs Buying

So I know there are lots of threads about lease vs buying. I ordered a car that will arrive in January. Although I was confident that I would finance the car, I'm considering leasing.
The obvious benefits of leasing are: new car in a few years, possible tax benefits for businesses, and possibly lower payments. The downsides to me are: limited mileage, and more costly if I decide to keep the car.
So my question is this. Assuming you don't crash the car (hence value dropping significantly), doesn't it make more sense to buy the car even if you'll sell it in two years. I'm assuming you get a good deal. My '14 is about 122k. After the 6.5% discount and the fees/taxes, it's back up to 125k. So how much do you think the car would be worth in 2yr, 3yr? Assume 12k miles a year. I always assumed 911's have high residuals.
Basically, if I decide to keep it, it would be cheaper than had I leased. And if I decide to sell it, I'm hoping I won't be negative.
 
Old Nov 26, 2013 | 03:48 PM
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Originally Posted by shaytun
So I know there are lots of threads about lease vs buying. I ordered a car that will arrive in January. Although I was confident that I would finance the car, I'm considering leasing.
The obvious benefits of leasing are: new car in a few years, possible tax benefits for businesses, and possibly lower payments. The downsides to me are: limited mileage, and more costly if I decide to keep the car.
So my question is this. Assuming you don't crash the car (hence value dropping significantly), doesn't it make more sense to buy the car even if you'll sell it in two years. I'm assuming you get a good deal. My '14 is about 122k. After the 6.5% discount and the fees/taxes, it's back up to 125k. So how much do you think the car would be worth in 2yr, 3yr? Assume 12k miles a year. I always assumed 911's have high residuals.
Basically, if I decide to keep it, it would be cheaper than had I leased. And if I decide to sell it, I'm hoping I won't be negative.
In WA State if you own the car (IOW paid the original sales tax) & trade it in
later on a car that cost more or is worth the same $, you only pay sales tax on the difference.

When you lease you pay some sales tax in each installment - if you purchase at the end of the lease, you pay the additional sales tax on your purchase price of the buyout when you register at DMV...just as if you never owned it in the 1st place.

Sales tax & license in the county where I reside combined is a little over 10% so it's a good chunk of cash.

The sales tax you paid in the lease is gone forever as far as getting any credit back.

Regarding writing a portion of the car off as a business expense....when I
was in the position to take advantage, our accountant said we were just asking for trouble with a car like a 911 & wanted nothing to do with it.

Do it personally or take it all as personal income was the alternative.

I know others who say it's perfectly legal - I chose not to go there.
 
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