shaytun

That's definitely true, although I meant it as putting all cash for the purchase.

cutolo91

i definetly lease only the more by cars > 100k€/$!
the months/year i spent (pay) a certain amount of money (in terms of lease) i can also use my 100k€ and invest it.....get more than immediately tranfer to the dealer. And, after 3y, i can still decide to buy out the car or not....

Team Plutonium

I lease and buy, I have a company and have two company car leases that get written off in full when itemizing deductions - simply a no brainer. Although I have "private" cars that allow for that kind of write-off, since these deduction can flag you for an audit depending on your profit/operating costs ratio.

blschaefer1

+1. I generally only lease due exactly to the reasons cited above. Also, bear in mind that negotiating the purchase price (cap cost) on a lease is exactly the same process as buying.

rnl

for me it's an emotional matter, i just do not like to lease anything. i prefer to own and do not like the idea of mileage limitations

96redLT4

I have wondered this for those who have companies. I wonder if anyone has actually been nailed b/c your you are leasing a Porsche Carrera, or why not a Ferrari, instead of a little Ford Ranger truck?

96redLT4

I was thinking of having them do a sample lease, and then decide if I want to just buy it. I know you can negotiate the cap cost, but can you also negotiate on the money factor or other variables that the dealer/Porsche makes money on?
J

nkhalidi

I think leasing only makes sense when the payments are deductible or when the money factor and residual are heavily incentivized. BMW occasionally does this. I'm not aware of Porsche doing this.

LexVan

I've always wondered about this too. Plus, I never want to appear too flashy or too successful ( pick a word) in front of my customers, colleagues, and employees. I fly under the radar. Works for me.

Team Plutonium

You can't "nail" anybody for leasing a 911, Rolls, or Ferrari as a company car as long as it is a legit company car. Everything is done by the books, accounting signed off, and while you might get some groans and judgmental eye-rolling during an audit there is nothing they can do since there are no restrictions. Note, this only applies to leasing. If you buy a car the feds consider it a luxury car if the purchase price exceeds $15K. Yup, not making this up, you can buy a Ford Explorer as a legit company but can write off only the depreciation of $15K. Full amount with a lease. However, I do state that I use it 20% for private use, but as long as you have other cars you own, I have another Porsche I use as a DD you are operating within the law.

My clients know that I'm a car fan, no secret there, and all my clients do fairly well anyway. With the way I bill and what they do it hardly matters.

Shotgun

Different strokes indeed! It all depends on your financial status\demeanor and use of the car! If you can meet the test of "true affordability" you should always buy!!!

Spyerx

Cap cost reduction is down payment. Negotiable
Money factor. Negotiable to buy rate
Residual not negotiable
Lease fee negotiable to buy rate
Doc fees depends
Everything else is negotiable.

You want high residual and low money factor. Porsche mf typically suck so they don't lease well. opposite of BMW who practically give the cars away for leases.

MJBird993

BWAaaaaaahahahahaha. I wondered how long that would last. 14 months, about average for you, I guess.

I had an accountant once who always said "leasing is a poor man's financing". I've done it in the past, and there are goods and bads about it. I think the important thing is to educate yourself and understand exactly how a lease works and then make your own decision. There are some gotchas. For instance, in my state, if you want to sell your leased vehicle to someone else, you have to first buy it from the leasing company, get it titled in your name, and then sell it. This means paying sales tax on the transaction. It's much easier to just trade it in. They do this on purpose, I'm sure, to encourage us to use dealers rather than private party sales.

Other gotchas include fees to buy the lease, fees to terminate the lease, interest rates disguised as money factor, etc.

MJBird993

This is excellent advice. I've been spoiled on BMW leases, although I usually get hammered later because I never keep them the entire term.

NoGaBiker

Thread drift warning -- Spyerx, your wheels look amazing with the silver car in your profile. Can you point me to another thread or place where I can see larger and more pics of this arrangement? Never considered gold wheels on silver but I'd like to file it away for later.