Putt-Putt

This is a great way to do it.

AW

In my experience, lease or cash are about the same. Interests paid on the lease are often about the same amount of money that is paid in sales taxes when buying cash in vice versa. Some would argue that using other people's money is better, however, it is hard to beat a bank on an after tax bases.

The lease main advantage is that you don't own the car and cannot be hurt by loss of value should the car be a little damaged.

I really like the equity line idea. Maybe I'll do that next time.

AW

A

jjl

what municipal bond returns over 6% tax free? we bought our benz in cash because i didn't see any investment out there that would guarantee a 6%+/- return to make financing at approx. 5.5% worthwhile. yes, some of our investments have returned better than 5%, but not guaranteed. plus, paying in cash does away with the administrative hassle of writing checks/online payments each month.

rotthaus

Cash. #1 with the KISS principle. And the equity line was busy elsewhere.

Greg
2005 Carrera S Coupe, Lapis Blue Metallic, Carrera Classic Wheels, PCCB, Bose, Sport Shifter, Sport Seats
Rennlist member #050419-5832

frayed

Cash.

BiggerTwin

MuniYield New York Insured Fund (MYN) closed at 6% Friday

drhendrix

I paid from my home equity credit line and then immediately moved the entire balance over to a few credit cards with 12 month term 0% interest rates I have a year to pay it off before the 0% rate expires

fast1

I'm really surprised at the poll results. At this point nealy 80% paid cash or financed. I thought it would be more like 50% leased their 997s.

JasonF

I paid cash for my 993 and constantly worried about every little thing that could possibly make it fall in value. Sold it and leased a 997. Now I have no worries. When a deer ran right into the side of my car last winter, the first thing I said was: "glad I didn't buy the car." Took the $$$ that was earmarked for the 997 and paid off the rest of my mortgage. To me, there's no greater feeling than have zero debt on your balance sheet.

mdonline

I leased my car under the "busniness new equipment finance program". Interest rate is about 6% with a residual value of 26k on a 91k car (tax included). Payment is 2k a month for 36 months with an OBLIGATED payment of 26k at the end of the lease. The entire monthly payment is tax deductable. Works out alot better than the standard lease if you figure at the end of 3 years, you can probably sell the car for about 55k.

Assuming your business tax bracket is 45%, if you do the math, your true cost is about 10k to drive the 997S for three years. Not bad. After three years, you are stuck with an asset in your business. Not a bad asset to keep. You can sell it or keep depreciating it.

JFScheck

Was lucky to pay cash for all my cars, but I have a long time of saving up before I can get any more!!!

mooty

i have usually paid cash for all my cars. AW is correct in that "lease or cash are about the same. Interests paid on the lease are often about the same amount of money that is paid in sales taxes when buying cash in vice versa." however, at end of lease you just turn the car back and no worries where as if you purchased it, you have to try to sell it and deal with tire kickers. i realized, but don't like to admit, that i change cars way too often. so it's much cleaner just to lease and forget.


I really like the equity line idea. Maybe I'll do that next time.
__________
no no no.
if you have a very good equity line, say prime-1/2 or so, it's still over 6% now. and it's continuing to climb. make sure your tax write off is truly advantageous.

JohnnyBahamas

I stole it.

mooty

johnny, can you steal one for me too?

i prefer a CGT in yellow ;-)

SrfCity

I've got the pink slip. It's nice not having payments every month.