Lease Vs Buy MB Credit Vs Home Equity Line
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Member
Joined: Jun 2003
Posts: 107
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From: Florida
SL500
Lease Vs Buy MB Credit Vs Home Equity Line
We have a choice on our new E500 which arrived at the Dealer in the last hour.
Buy it on the MB 2.9% interest loan offer, Lease it (effective rate 7%) and it becomes a full business write-off or use Home equity line floating rate of 3.95% and take the interest as a deduction.
Car will come in around 70k out the door.--it is loaded.
Opinions and some help please
Buy it on the MB 2.9% interest loan offer, Lease it (effective rate 7%) and it becomes a full business write-off or use Home equity line floating rate of 3.95% and take the interest as a deduction.
Car will come in around 70k out the door.--it is loaded.
Opinions and some help please
Out Of Control!!
Joined: Jul 2003
Posts: 13,969
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From: Florida
In the market
Assuming your financail situation is good enough that defaulting on the loan is not even a remote threat, I would use your home equity so as to take the interest as a deduction. That is just my $.02
MBWorld Fanatic!
Joined: Nov 2001
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From: Sunny South Florida
1995 Jaguar XJS Convertible
Which will benefit your financial situation?
1) writing full amount off as business expense? OR 2) writing off home equity interest?
you have to do the numbers and choose 1) or 2) depending on which one will benefit you tax wise.
1) writing full amount off as business expense? OR 2) writing off home equity interest?
you have to do the numbers and choose 1) or 2) depending on which one will benefit you tax wise.
MBWorld Fanatic!
Joined: Dec 2002
Posts: 2,399
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From: Irvine, CA
07 M6, 05 Noble, 01 S4, Smart ForTwo
dont use your home equity! Most people will tell you you're crazy for that. However, if you plan on paying it off in less that 3 years, I'd say do it. Risky business, to put a depreciating asset against your home. I'd say take MB's 2.9% or lease. Of course, you should lease it if you plan to own it for 5 years or less. Only good to buy if you will keep it 6-7+years.
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Joined: Aug 2002
Posts: 924
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From: Northern VA
2003 MB E500
I've used home equity loans to pay for my last 3 cars. i actually ended up paying them off faster than i would have probably with a car loan and i got a tax deduction on top of reduced interest in the first place. if you are disciplined it will likely save you money especially with Prime @ 4% and if you typically hang on to your cars for long time. If you aren't and may find yourself just making the minimum payment, don't use the equity line.
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