lease vs finance 2015 GT3 - tips and advice are welcome :)
12-18-2014, 10:57 AM
#46
Me as well. I'd finance the whole car at the rate I got (1.59%) if they let me. Still financed a large portion of it. I gladly will invest the difference elsewhere. I may not beat 1.59% over the course of the 5 year loan, but odds are I will.
12-18-2014, 01:15 PM
#47
Three Wheelin'
12-18-2014, 03:10 PM
#48
Nordschleife Master
12-18-2014, 03:39 PM
#49
GT3 player par excellence
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when in SF, I take u to dinner. I buy ramen in bulk. I then sell to Costco. I eat the packaging too, harder to digest so I'm less likely to be hungry again. I save all my pennies.
12-18-2014, 04:15 PM
#50
Case Study 1-time lease payment in the state of CA (or any state that only charges tax on the depreciation, not full msrp):
MSRP $140,000
1-time lease payment (36 months, .002 money factor) $76,979
Residual (52%) $72,800
MSRP less residual $67,200
Finance/Sales Tax Cost ('1 time lease payment' - 'MSRP less residual') $9,779
Outright purchase:
MSRP $140,000
Sales tax Cost (8%) $11,200
You have saved over $1,400 and you only had to front half the cash. The advantage over financing would be even more.
MSRP $140,000
1-time lease payment (36 months, .002 money factor) $76,979
Residual (52%) $72,800
MSRP less residual $67,200
Finance/Sales Tax Cost ('1 time lease payment' - 'MSRP less residual') $9,779
Outright purchase:
MSRP $140,000
Sales tax Cost (8%) $11,200
You have saved over $1,400 and you only had to front half the cash. The advantage over financing would be even more.
12-18-2014, 04:24 PM
#51
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Here's another scenario to consider. Lease the car, drive it mainly on the track with a lot of track miles each year, do all required maintenance, get clear bra so it doesn't get scuffed too much, then turn it in at the end of the lease. Maybe that could work out in your favor if the depreciated value of a heavily tracked car would be well under the residual?
12-18-2014, 07:27 PM
#52
Good to know. So if you sell it yourself, then you have to essentially buy off the residual of the car from the dealer. Is there no sales tax on that transaction with the dealer?
12-18-2014, 07:33 PM
#53
Leasing is smart.
Proof: Paul McCartney should have leased Heather Mills. Instead, he bought her and paid through the nose.
Proof: Paul McCartney should have leased Heather Mills. Instead, he bought her and paid through the nose.
12-18-2014, 08:38 PM
#54
Looking at the difference in residuals and what my car should be worth after a 3 year lease I will buy back at about 20K below market value. 7.5% * 20K = $1500. Like someone said we are better working smarter at what we do for a living than trying to save a few $ on toys. Main advantage of a lease is if you can write off some of your lease payment otherwise it would be better to buy.
12-18-2014, 09:25 PM
#55
Race Director
12-18-2014, 09:57 PM
#56
Case Study 1-time lease payment in the state of CA (or any state that only charges tax on the depreciation, not full msrp):
MSRP $140,000
1-time lease payment (36 months, .002 money factor) $76,979
Residual (52%) $72,800
MSRP less residual $67,200
Finance/Sales Tax Cost ('1 time lease payment' - 'MSRP less residual') $9,779
Outright purchase:
MSRP $140,000
Sales tax Cost (8%) $11,200
You have saved over $1,400 and you only had to front half the cash. The advantage over financing would be even more.
MSRP $140,000
1-time lease payment (36 months, .002 money factor) $76,979
Residual (52%) $72,800
MSRP less residual $67,200
Finance/Sales Tax Cost ('1 time lease payment' - 'MSRP less residual') $9,779
Outright purchase:
MSRP $140,000
Sales tax Cost (8%) $11,200
You have saved over $1,400 and you only had to front half the cash. The advantage over financing would be even more.
12-19-2014, 01:47 AM
#57
Rennlist Member
It always makes me laugh when someone on one of these high end car forums starts ranting with a "if you have to ask, you can't afford it" type attitude. I've been super lucky and done well for myself but as someone who's worked hard and gone from making low five figures to high seven figures I will say I never look down on someone asking a real financial questions with such an attitude. Even though I can afford it, I always try and get the best deal and make the best decision with how to spend my $ on the things I want. I mean who plans a trip and then says to the airline "give me the most expensive ticket (in coach or first), because I don't care what it costs....only fools who typically end up broke in the long run, or people who were never going to fly in the first place....
12-19-2014, 02:21 AM
#58
Rennlist Member
I'd have to say, with a high seven figure salary, I might not be concerned.........with anything involving money. Call me frivolous, just saying.
12-19-2014, 03:55 AM
#59
12-19-2014, 11:31 PM
#60
Rennlist Member
Except that you'll want to sell the car at the end of the lease instead of turning it in to recapture money via the fact that there's no way in hell a 3 year old GT3 with 15k miles will only be worth $72,800; Then you'll end up paying all that tax anyways and be significantly behind the $1400 you've claimed to save. The lease on the GT cars is a horrible deal unless some time during the next three years you wreck the car since you won't get charged for diminished value at turn-in or you have some sort of business expense write-off.