Car Lease v. Buying

[yuneeq]

@Barry Where I come from, the joy of leasing is primarily discovered in brands such as Lexus, Mercedes, Infinity, BMW and Audi. Those cars are probably only fun for a couple years. After all, who wants to drive around an old luxury car? Someone buying a cheap car is definitely better off in the buying route.

@Meir Good point, it's something to keep in mind. There's no rush to sign a lease or buy a car, take it easy with a rental until you find a good deal.

A general question I have: Would it make sense  financially for someone who likes to drive new cars to buy and sell a new car every ~3 years? Would you be saving enough to offset the additional hassle of selling a car?

And a side point I have: There's a myth that owning a car means that you don't have to be worried about scratches and dents. Unless you are planning on scrapping the car when your done with it, you will probably be selling it. If so, you will either need to fix it to receive a higher value or you will sell for a lower value. Neither of those options are  financially better for you compared to a lease.

[Barryg]

Additional general Q
What are the tax differences between financing and leasing for self employed?

[notanonymous]

Additional general Q
What are the tax differences between financing and leasing for self employed?

Disclaimer: I'm not an accountant.
AFAIK, you can deduct either a) standard rate per mileage (e.g. $.45 per mile); or b) actual expenses (e.g. lease/loan, gas, repairs, tolls, etc.)
It should not matter whether you are leasing or loaning.  If the car was a company asset, then there may be a difference regarding how it looks on your books, but that was not your question.

[notanonymous]

@Barry Where I come from, the joy of leasing is primarily discovered in brands such as Lexus, Mercedes, Infinity, BMW and Audi. Those cars are probably only fun for a couple years. After all, who wants to drive around an old luxury car? Someone buying a cheap car is definitely better off in the buying route.

@Meir Good point, it's something to keep in mind. There's no rush to sign a lease or buy a car, take it easy with a rental until you find a good deal.

A general question I have: Would it make sense  financially for someone who likes to drive new cars to buy and sell a new car every ~3 years? Would you be saving enough to offset the additional hassle of selling a car?

And a side point I have: There's a myth that owning a car means that you don't have to be worried about scratches and dents. Unless you are planning on scrapping the car when your done with it, you will probably be selling it. If so, you will either need to fix it to receive a higher value or you will sell for a lower value. Neither of those options are  financially better for you compared to a lease.

My motto: "Drive the car until the wheels fall off!"

[HP58]

My motto: "Drive the car until the wheels fall off!"

Then apparently this thread isn't for you

[notanonymous]

Then apparently this thread isn't for you

One of my cars is pushing 250K...

[HP58]

One of my cars is pushing 250K...

Wow! Bla"h!
Make?

[notanonymous]

Wow! Bla"h!
Make?

Isuzu (believe it, or not).  I wouldn't be surprised if there aren't 9 other Isuzus on the road (in the world) with that mileage.

[HP58]

Isuzu (believe it, or not).  I wouldn't be surprised if there aren't 9 other Isuzus on the road (in the world) with that mileage.

Crazy. Was sure you'd say Toyota. Isuzu?! Not sure if there are 9 others period ...

[notanonymous]

Crazy. Was sure you'd say Toyota. Isuzu?! Not sure if there are 9 others period ...

And, bli ayin hara, as far as I can remember (I'm the second owner, since 2001, IIRC) all major parts are original.

[bobthebuilder]

And, bli ayin hara, as far as I can remember (I'm the second owner, since 2001, IIRC) all major parts are original.

Wow never heard a isuzu going that long! You must maintain it well

[bobthebuilder]

Dan, i am shocked you were able to bring yourself to post a leasing ad on the main site 

[Dan]

Dan, i am shocked you were able to bring yourself to post a leasing ad on the main site 

I never said a lease makes no sense.  It makes sense for plenty of people.
I said I don't like those who fool themselves into thinking they're saving money by leasing over buying.

[bobthebuilder]

I never said a lease makes no sense.  It makes sense for plenty of people.
I said I don't like those who fool themselves into thinking they're saving money by leasing over buying.

Most that lease seem to like the confort and luxury of a new car, not the price

[Dave321]

I never said a lease makes no sense.  It makes sense for plenty of people.
I said I don't like those who fool themselves into thinking they're saving money by leasing over buying.

+1

people have reasons to lease and reasons to buy. But if someone thinks that leasing is cheaper, they didnt do research.....

[bobthebuilder]

I never said a lease makes no sense.  It makes sense for plenty of people.
I said I don't like those who fool themselves into thinking they're saving money by leasing over buying.

But your for sure right leasing is not a very cheep approach to a car...

[Dan]

Most that lease seem to like the confort and luxury of a new car

Of course they do.  And I have no issue with that as long as they realize they're paying for that privilege.
Believe it or not I run into plenty of people who think they're coming out ahead.

[bobthebuilder]

Of course they do.  And I have no issue with that as long as they realize they're paying for that privilege.
Believe it or not I run into plenty of people who think they're coming out ahead.

lol, you pay for covience... leasing is one of them

[Barryg]

@Barry Where I come from, the joy of leasing is primarily discovered in brands such as Lexus, Mercedes, Infinity, BMW and Audi. Those cars are probably only fun for a couple years. After all, who wants to drive around an old luxury car? Someone buying a cheap car is definitely better off in the buying route.

@Meir Good point, it's something to keep in mind. There's no rush to sign a lease or buy a car, take it easy with a rental until you find a good deal.

A general question I have: Would it make sense  financially for someone who likes to drive new cars to buy and sell a new car every ~3 years? Would you be saving enough to offset the additional hassle of selling a car?

And a side point I have: There's a myth that owning a car means that you don't have to be worried about scratches and dents. Unless you are planning on scrapping the car when your done with it, you will probably be selling it. If so, you will either need to fix it to receive a higher value or you will sell for a lower value. Neither of those options are  financially better for you compared to a lease.

@ 1st bolded part... I do!
http://forums.dansdeals.com/index.php?topic=27160.msg456890#msg456890
@ 2nd bolded part... I don't!!
I guess I'm the exception twice in one post...

[Barryg]

Disclaimer: I'm not an accountant.
AFAIK, you can deduct either a) standard rate per mileage (e.g. $.45 per mile); or b) actual expenses (e.g. lease/loan, gas, repairs, tolls, etc.)
It should not matter whether you are leasing or loaning.  If the car was a company asset, then there may be a difference regarding how it looks on your books, but that was not your question.

AFAIK, listed in b... tolls, can be counted on both sides so it would be: a) standard mileage (e.g $.55/mile) + tolls and parking vs. b)actual expenses of lease, repairs, tolls and parking...