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2019 GT3 RS Leasing - Anyone have experience in this? Money Factor?

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2019 GT3 RS Leasing - Anyone have experience in this? Money Factor?

 
Old 12-28-2018, 12:15 PM
  #61  
joejenie
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If you do trade every 6-12 months, a lease would be a great way to go for sales tax reasons. The money factor (interest rate) is probably 2-3% higher, but not a big number over 6-12 months. If you keep for a longer period, then the purchase probably starts making better sense. In CA with their high tax, I would lease for sure.
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Old 12-28-2018, 12:18 PM
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Originally Posted by joejenie View Post
If you do trade every 6-12 months, a lease would be a great way to go for sales tax reasons. The money factor (interest rate) is probably 2-3% higher, but not a big number over 6-12 months. If you keep for a longer period, then the purchase probably starts making better sense. In CA with their high tax, I would lease for sure.
I dont disagree with that premise at all. Higher cost but its the cost of freedom and flexibility. I was just trying to figure out how you can lease a car for free based on the posts previously.

BTW- any updates on your cars ETA?
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Old 12-28-2018, 12:20 PM
  #63  
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Originally Posted by Yippiekiaye
I was ignoring tax as it would be due in both instances correct? I buy a 200k car, I pay 200k plus tax. Car is worth 250k - I sell the car and net my profit.

I lease the car worth 200k. make 6 lease payments. Only pay tax on the 6 payments. Car is worth 250 and I decide to flip it. I have to buy out the car before I can flip it correct? At that time the remaining tax would be due.
When you buy back a lease, at least in CA, the lien holder doesn't charge you sales tax. It is your responsibility to pay it at the dmv when you register the car in your name. If you sell the car to someone else within 10 days, CA does not expect you to pay the sales tax on the buyout
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Old 12-28-2018, 12:25 PM
  #64  
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Originally Posted by Yippiekiaye View Post
I dont disagree with that premise at all. Higher cost but its the cost of freedom and flexibility. I was just trying to figure out how you can lease a car for free based on the posts previously.

BTW- any updates on your cars ETA?
Car has left the factory. Says delivery 3/8 but based on others here, probably middle of February. Need to buy another $100k car for cheap to trade in against it so I can get rid of the sales tax now! haha. I should just lease.
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Old 12-28-2018, 12:28 PM
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Originally Posted by orthojoe View Post
When you buy back a lease, at least in CA, the lien holder doesn't charge you sales tax. It is your responsibility to pay it at the dmv when you register the car in your name. If you sell the car to someone else within 10 days, CA does not expect you to pay the sales tax on the buyout
got it. Now that makes sense. Ty
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Old 12-28-2018, 01:24 PM
  #66  
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Originally Posted by joejenie
Car has left the factory. Says delivery 3/8 but based on others here, probably middle of February. Need to buy another $100k car for cheap to trade in against it so I can get rid of the sales tax now! haha. I should just lease.
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Old 12-28-2018, 01:32 PM
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Here is the problem CJ. I have to buy it at a price that Porsche dealer will pay for it. So trade in value. Then it has to come from a private seller so no sales tax. Your idea won't work unless you are going to give me one hell of a steal on something. . The sales tax game in AZ is interesting for sure. I already traded my GT3 in but another $100k car bought right would save me another $8k in sales tax as you know. Not looking really hard, but if something made sense, I would do it.

I guess I could just trade my 997, but don't think I want to part with it yet (or ever)
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Old 12-28-2018, 01:49 PM
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Originally Posted by Yippiekiaye View Post
So many people cant write the check, I get that. So why not finance like you stated CJ - do a long term loan - atleast you get your principal back when you sell - you lose the interest. But if you lease, you lose the entire lease payment.

What am I missing here?
You're missing the part where the monthly lease payment is comprised of tax, interest, and depreciation, the latter of which reduces your current payoff balance by a fixed amount each month. So no, you do not lose the entire lease payment(s).
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Old 12-28-2018, 01:50 PM
  #69  
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Here's what I think of this discussion on leasing:

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Old 12-28-2018, 02:26 PM
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News flash: New HELOC interest (used for a vehicle purchase) isn't deductible in 2018.
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Old 12-28-2018, 02:27 PM
  #71  
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Originally Posted by joejenie View Post
Car has left the factory. Says delivery 3/8 but based on others here, probably middle of February. Need to buy another $100k car for cheap to trade in against it so I can get rid of the sales tax now! haha. I should just lease.
You should have bought Scott's GT4.
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Old 12-28-2018, 02:27 PM
  #72  
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Originally Posted by joejenie View Post
Here is the problem CJ. I have to buy it at a price that Porsche dealer will pay for it. So trade in value. Then it has to come from a private seller so no sales tax. Your idea won't work unless you are going to give me one hell of a steal on something. . The sales tax game in AZ is interesting for sure. I already traded my GT3 in but another $100k car bought right would save me another $8k in sales tax as you know. Not looking really hard, but if something made sense, I would do it.

I guess I could just trade my 997, but don't think I want to part with it yet (or ever)
You don't need to pay sales tax when you buy from a private seller? I thought when you register it in DMV, they will collect the tax based on how much you paid for it. Unless they private seller pretend to transfer the car to you as gift. But wouldn't it be a bit suspicious that a total stranger gives you a car?
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Old 12-28-2018, 02:32 PM
  #73  
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Originally Posted by yxc145 View Post
You don't need to pay sales tax when you buy from a private seller? I thought when you register it in DMV, they will collect the tax based on how much you paid for it. Unless they private seller pretend to transfer the car to you as gift. But wouldn't it be a bit suspicious that a total stranger gives you a car?
No sales tax for private party sales in Arizona.
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Old 12-28-2018, 02:34 PM
  #74  
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Originally Posted by Yippiekiaye View Post
Correct - but you lost those rent payments correct? You dont get those back?

Lets ignore the buyout fee of a few hundred dollars for the sake of this discussion. Lets say I lease the car for 2k a month and the total cost is 200k for the sake of this example. After 6 months I decide to get out of the car and sell it as its worth 50k more. Ive paid 12k to rent the car. I buy out the car and sell it for 250k. My net in this example is 238k because Ive paid the lease payments. Again- ignoring the smaller fees and Ive made 38k.

Lets say I decide to pay cash for the car. I write a check for 200k. I sell it for 250k. I made 50k.

Im ignoring tax as tax is negligible as its due in both instances.

Lets say I finance the car. My payments are 2500. 250 in each instance goes to interest, the rest goes to principal. Same issue- I sell the car for 250k and pay off my loan. Ive built up equity in the car with my payments, the only thing Im out is the financial charge which would be $1500 so my net is $48,500.

In the 3 instances the lease cost the most even if you sell the car for over msrp which we all know is rare. Im hoping this makes sense. Again, I realize that people may not be able to write a check for the car but do long term financing, it seems like a better deal.
1. This entire post makes absolutely no sense.

2. You never pass an opportunity to make underhanded claims that other people aren't as wealthy as you, whether it was the discussion about McLaren depreciation, or here when you claim that "people can't write the check." In fact, the overwhelming majority of GT buyers pay cash and don't even blink; a good portion have multiple Porsches in their garage. Many of the guys on this forum could buy a dealership if they truly wanted to. Some choose to lease, not because they "can't write the check," but because it's simply smarter and they've seen how it works to their advantage. You have this strange misconception that you're in some unique class and others "can't write checks" like you. It's incredibly annoying.


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Old 12-28-2018, 02:41 PM
  #75  
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Originally Posted by Yippiekiaye View Post
No sales tax for private party sales in Arizona.
I see. that's nice.
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