Porsche Lease makes no sense
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to be honest, I've never leased a vehicle before so I don't know anything about it.....here is a question..... I have my own business and have been playing with the idea of leasing a vehicle through the business, once it comes due then personally purchase the vehicle......can that be done??
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Yes, money factor is the interest rate. I don't know why they don't just call it an interest rate, I think it is a method crafted by the auto industry to disguise the true rate.
Take the money factor and multiply by 4800 and you have your interest rate. Example on my 991 lease, money factor is 0.00068, or 3.2% interest.
This is generally negotiable to a point if you have top tier credit. Dealers earn part of the profit if they sell a lease with a money factor above the 'base rate'.
Take the money factor and multiply by 4800 and you have your interest rate. Example on my 991 lease, money factor is 0.00068, or 3.2% interest.
This is generally negotiable to a point if you have top tier credit. Dealers earn part of the profit if they sell a lease with a money factor above the 'base rate'.
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Those talking about only paying the sales tax on the depreciated portion does not hold true in many other states. Here in the People's Republik of Maryland you pay the full boat for taxes on a car that is leased regardless of lease term. You pay 6% of your capitalized cost.....even if its a 12 month lease
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Like others have said, a car is a depreciating asset, buying a car with cash vs financing makes little difference, it's actually probably better for you to put that 100K into stocks as the market is very good now and you will get a much better return. Most owners that buy their car brand new will have to trade it in to the dealer when getting their next car as selling a car in the 90-100K is a challenge as most people in the used market rather purchase from the dealer. Your loss on a trade in is much higher than if you leased the car. Just as an example, C2S, MSRP 124K, after discount + tax = 122K, after 2 years of use, trade in value = 75K. That's 2K a month...
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A lot of companies that leased used cars either went out of business or stopped doing it after the financial meltdown in 2008. From my understanding you can lease a Certified Pre-Owned PCar from PFS. I've seen some leases advertised.
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Like others have said, a car is a depreciating asset, buying a car with cash vs financing makes little difference, it's actually probably better for you to put that 100K into stocks as the market is very good now and you will get a much better return. Most owners that buy their car brand new will have to trade it in to the dealer when getting their next car as selling a car in the 90-100K is a challenge as most people in the used market rather purchase from the dealer. Your loss on a trade in is much higher than if you leased the car. Just as an example, C2S, MSRP 124K, after discount + tax = 122K, after 2 years of use, trade in value = 75K. That's 2K a month...
If you keep you cars longer than 3-4 years then buying makes more sense as the depreciation curve levels out a lot in the later years. You pay for the depreciation all at once when you trade in your purchased car after two years rather than paying monthly like on a lease.
My $120K 991 C2 Cab is leased for $1140 per month including 9% CA tax. There is no way I'm keeping it when the lease is up in Nov - it will not be worth the $88K residual value needless to say.
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All the folks with a business write off can probably justify a lease, but keep in mind, your commute miles don't count. One of the number one IRS red flags is a high end car maxed for deduction. If you are going for more than a 75% deduction, prepare for some questions.
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