CGT Accident after 10 minutes of taking delivery
#31
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Originally posted by ben in lj
[B"I'd be very surprised if any CGT buyer was 'making payments'."
That particular buyer has a $6k/mth lease payment. [/B]
[B"I'd be very surprised if any CGT buyer was 'making payments'."
That particular buyer has a $6k/mth lease payment. [/B]
Gary
#32
"Huh. I would have figured 99.9% of CGTs would have sold for cash."
i might consider leasing mine too. remember, in CA you automatically get hosed on sales tax since you have to pay it 100% up front ($35k on the CGT) and get no sales tax credit later down the road on trade in. iow, on a lease you only pay tax on the portion of the car you "use". further, it's a nice hedge against monsterous diminished value should an accident occur. it'll all depend on how cheap the money is in november when it arrives. we leased our TT Cayenne for similar reasons (in addition to not knowing how bad it'll tank given it's too new to have depreciation history) and the rate was appx 4% in after tax money including the sales tax benefit. if i can do a lot better than that on my capital why would i tie up $500k.
i might consider leasing mine too. remember, in CA you automatically get hosed on sales tax since you have to pay it 100% up front ($35k on the CGT) and get no sales tax credit later down the road on trade in. iow, on a lease you only pay tax on the portion of the car you "use". further, it's a nice hedge against monsterous diminished value should an accident occur. it'll all depend on how cheap the money is in november when it arrives. we leased our TT Cayenne for similar reasons (in addition to not knowing how bad it'll tank given it's too new to have depreciation history) and the rate was appx 4% in after tax money including the sales tax benefit. if i can do a lot better than that on my capital why would i tie up $500k.
#33
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Thanks for the support Ben. I heard the same thing at Pioneer. The guy was making payments on it.
I like you. You are a smart money man like me. We want keep as much of it as we possibly can and grow it. Paying cash for a CGT? That's not a move most of us that had to work hard for it and want to keep it would make. Not to imply that buying a CGT is a smart $ move no matter how you pay for it, but paying cash is the less wise of the two.
I like you. You are a smart money man like me. We want keep as much of it as we possibly can and grow it. Paying cash for a CGT? That's not a move most of us that had to work hard for it and want to keep it would make. Not to imply that buying a CGT is a smart $ move no matter how you pay for it, but paying cash is the less wise of the two.
#34
paying cash for the car will only make sense to me if the depreciation is expected to be much lighter than what the lease company will figure (therefore avoiding being overcharged for the "use" portion) and/or the after tax rate of interest on a finance (if the lease is no good) is too high given it's a risk free rate you capture if you avoid it. like you probably, my automatic thought process is centered on after tax rates of return (w/present value included) re: capital allocation weighed against opportunity cost.
#36
:-) who were you there?
btw, apparently the truck driver's insurance is claiming the CGT owner is at fault (for stalling it) and the CGT owner's insurance is not paying either because they would not have underwritten the car anyway. iow, the insurance company is claiming that since they would not have insured the car anyway, the normal 30 days to add the car to his policy does not apply.
btw, apparently the truck driver's insurance is claiming the CGT owner is at fault (for stalling it) and the CGT owner's insurance is not paying either because they would not have underwritten the car anyway. iow, the insurance company is claiming that since they would not have insured the car anyway, the normal 30 days to add the car to his policy does not apply.
#37
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KASH FLOW, but I didn't post that much over there. I took a long brake from the securities markets and moved to real estate several years ago. I'm getting over weighted in real estate. Time to do some profit taking and get back in the market (which is what i've been timidly doing for the past year).
Some market we have/had here in SD County. For future real estate investments I'm headed elsewhere there are plenty of rapid growth areas where its like buying value stocks. Here its like buying yahoo at 350/share in 1999/2000. Not saying it won't continue to go up but not at the same pace.
OK now back to the P-Cars...
p.s. Now I REALLY feel bad for the guy. OUCH!!!
Some market we have/had here in SD County. For future real estate investments I'm headed elsewhere there are plenty of rapid growth areas where its like buying value stocks. Here its like buying yahoo at 350/share in 1999/2000. Not saying it won't continue to go up but not at the same pace.
OK now back to the P-Cars...
p.s. Now I REALLY feel bad for the guy. OUCH!!!
#38
other than what will soon be our primary residence when completed and some apartments, our last residential property should close by months end. sd real estate sure seems frothy, but now that we have more comfort with it, we'll be getting involved during the next downturn. personally i think residential is scary just about everywhere ala techs in 98-00.
btw, you, spr and me ought to get together for some mountain drives.
btw, you, spr and me ought to get together for some mountain drives.
#40
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I would still seek diminution of value even if the car was leased and have personally got it on a leased vehicle that was smacked. Its not out of the question and different state are a bit all over the place on dimunition of value claims.
#43
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A mountain drive always sounds good to me. Weekends can get kind of crazy though. Last time I went up to Mt. Palomar there was a lot of traffic and the guys on two wheels were really scaring me with their stunts. I'm sure there are better areas and times to go in order to avoid that type of thing.
Since we are so close to the summer solstice it might be a good idea to try going for an early evening drive during the week. Just let me know when.
Since we are so close to the summer solstice it might be a good idea to try going for an early evening drive during the week. Just let me know when.