View Poll Results: did you pay Cash Finance or Lease
Paid cash
62
53.91%
Financed
28
24.35%
Leased
25
21.74%
Voters: 115. You may not vote on this poll
did you pay Cash Finance or Lease
03-17-2014 | 10:48 PM
#46
Track Day
Joined: Apr 2011
Posts: 21
Likes: 0
In most instances, the excess miles charged under the terms of the lease costs LESS than the mileage penalty from the guide books that deduct for high miles.
If you have unlimited cash, it's fine to purchase a car. It just doesn't make much sense given the advantages of leasing:
1. Cash flow
2. Factory guarantee against excessive depreciation (through the residual)
3. OPTIONS: You can buy at the end of the lease or walk
4. Credit rating gets a boost from leasing (more than financing)
5. Avoid negative equity in your vehicle.
6. In many states, you'll pay less in sales tax (at least in those states without a trade-in credit). On a cash or finance, you pay UPFRONT the sales tax. Not so in the case of leasing.
If you went to Vegas, would you like the casino to accept these terms of yours: Heads I win, Tails we tie? THAT is leasing. How? If you have equity in the vehicle (FMV > residual) at the end of the lease term, you buy the car and capture the equity. If not, you're not obligated to eat the deprecation (FMV < residual).
If you have unlimited cash, it's fine to purchase a car. It just doesn't make much sense given the advantages of leasing:
1. Cash flow
2. Factory guarantee against excessive depreciation (through the residual)
3. OPTIONS: You can buy at the end of the lease or walk
4. Credit rating gets a boost from leasing (more than financing)
5. Avoid negative equity in your vehicle.
6. In many states, you'll pay less in sales tax (at least in those states without a trade-in credit). On a cash or finance, you pay UPFRONT the sales tax. Not so in the case of leasing.
If you went to Vegas, would you like the casino to accept these terms of yours: Heads I win, Tails we tie? THAT is leasing. How? If you have equity in the vehicle (FMV > residual) at the end of the lease term, you buy the car and capture the equity. If not, you're not obligated to eat the deprecation (FMV < residual).
That said, if you can't afford to buy the car, you shouldn't be leasing it either.
03-18-2014 | 03:27 AM
#48
Race Director
Joined: Jun 2013
Posts: 11,353
Likes: 463
From: Oceanside/Vista (N. San Diego County), CA
Know what bugged the crap out of me? A few weeks after buying the car, I get a form in the mail that my purchase was reported to the Federal Government because I paid cash using U.S. currency.
So, now I'm probably on some sort of Federal "watch list" for committing the crime of using money to buy something.
So, now I'm probably on some sort of Federal "watch list" for committing the crime of using money to buy something.
03-18-2014 | 08:56 AM
#49
Drifting
Joined: Oct 2012
Posts: 3,242
Likes: 78
From: Merrick, Long Island NY (Jeff)
Know what bugged the crap out of me? A few weeks after buying the car, I get a form in the mail that my purchase was reported to the Federal Government because I paid cash using U.S. currency.
So, now I'm probably on some sort of Federal "watch list" for committing the crime of using money to buy something.
So, now I'm probably on some sort of Federal "watch list" for committing the crime of using money to buy something.
03-18-2014 | 09:50 AM
#50
Burning Brakes
Joined: Oct 2006
Posts: 820
Likes: 7
From: Houston
Know what bugged the crap out of me? A few weeks after buying the car, I get a form in the mail that my purchase was reported to the Federal Government because I paid cash using U.S. currency.
So, now I'm probably on some sort of Federal "watch list" for committing the crime of using money to buy something.
So, now I'm probably on some sort of Federal "watch list" for committing the crime of using money to buy something.
03-18-2014 | 12:40 PM
#51
Intermediate
Joined: Feb 2008
Posts: 34
Likes: 0
I did PenFed Payment Saver on 100k loan at 1.74%. I could have paid cash, but sub 2% is tough to beat. This loan is cheaper than my mortgage (2% for 5yr ARM). I take some solace in that the mortgage is tax deductble... for now anyway
03-18-2014 | 12:56 PM
#52
Race Director
Joined: Jun 2013
Posts: 11,353
Likes: 463
From: Oceanside/Vista (N. San Diego County), CA
ANY cash transaction of $10K or more (pretty sure that's the limit) has to be reported in the US, it's been that way for a long time now. Most people wouldn't consider it very safe to be carrying around $100K in cash either, my last automotive "cash" purchase was with a personal check.
It was sort of a mental thing for me: since I didn't see the money on my bank statements, it almost felt like it wasn't there. Since it was cash locked up in a safe, it was easier to make sure it didn't get frittered away on something else. And, for a little "boost" now and then, I could take a quick look at it to see how close I was to my goal.
So, for all of my hard work, the US government says "Hmmm... that looks like some mighty suspicious activity going on there. We better watch this guy."
Government scum.
03-18-2014 | 02:15 PM
#54
Thread Starter
Racer
Joined: Jan 2014
Posts: 487
Likes: 3
From: You Don't Mess with the Zohan
03-18-2014 | 04:34 PM
#56
Three Wheelin'
Joined: Sep 2013
Posts: 1,710
Likes: 10
I traded in my 2009 C2S(which I paid cash for) for my 2014 911/50. The trade meant that ~60k was tax free. I leased the difference. I leased because if the car was in an accident it was loose most of its collectibility. So if the car is not in an accident and runs without any issues I'll buy it out as a collectible. If it is in an accident or has "issues" it's bye bye.
03-18-2014 | 04:47 PM
#57
Race Car
Joined: Oct 2004
Posts: 3,899
Likes: 222
I didn't take "paying cash" literally. I'm assuming that virtually everyone wrote a check for their cars. On the other hand I did see a couple of young gentlemen purchase an Audi R8 a couple years ago, and they did pay cash. I don't think the dealer was happy having to receive all of that cash.
03-18-2014 | 04:48 PM
#58
Banned
Joined: Jan 2013
Posts: 26,141
Likes: 5,418
From: Chicagoland Area
03-18-2014 | 04:52 PM
#59
Race Car
Joined: Oct 2004
Posts: 3,899
Likes: 222
03-18-2014 | 05:01 PM
#60
Banned
Joined: Jan 2013
Posts: 26,141
Likes: 5,418
From: Chicagoland Area