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I don't like to rent a car. I think it's better to buy than to spend money on rent. Perhaps I should tell you about how I decided to buy my first car. For about two months, I regularly viewed ads for the sale of cars, and because the amount was limited. I was very upset that I couldn't find anything, worried, drank sedatives. Then a friend suggested that I think about vakuudeton laina 40000 and I understood that this amount would be enough for me to buy a car. I decided to take a chance and did not regret it at all.
I don't like to rent a car. I think it's better to buy than to spend money on rent. Perhaps I should tell you about how I decided to buy my first car. For about two months, I regularly viewed ads for the sale of cars, and because the amount was limited. I was very upset that I couldn't find anything, worried, drank sedatives. Then a friend suggested that I think about vakuudeton laina 40000 and I understood that this amount would be enough for me to buy a car. I decided to take a chance and did not regret it at all.
Is it just me, or is there something scammy about this post?
Sure. After speaking to my accountant he advised it would be a more efficient tax write off when depreciated as a lease.
Other important factors:
Car can always be purchased and turned into a purchase without any loss.
G-d forbid, in an accident or any other major circumstance which will have an impact on the car’s history, I will not be personally liable and won’t take a hit when trying to sell the car. If I decide to purchase the car after 5 years, I’ll be at a loss of about $40k versus the option of financing it outright for 6 years. I made the choice of taking a $40k hit spread out over 6 years to be able to sleep better.
what do you guys think?
did we go the right route? Did we do ok on the lease numbers?
Obviously I don’t know anything about your tax situation but currently with bonus depreciation of 100% so if you buying through your business you could write off 100% of the cost of the vehicle on day 1 plus all interest expenses for the term of the loan. Previous write off benefits of leases are worthless compared to this. Really only savings is the lower monthly charge. Once bonus depreciation is phased out then maybe it’s a benefit again.
Purchase Price of vehicle: $209k
Trade in Allowance: $6k
Taxable Amount less tax credit: $155k
Total Tax in CA: $11,238
Amount Down: $10,000
Total Amount Financed 72 months @ 2.99%: $204k
Monthly Payment: $3100
Total Interest Paid over life of loan: $19k
You can depreciate the G63 due to its weight class entirely the first year. So basically your entire purchase price can be deducted if the vehicle is utilized for your business etc. AMGs in general DO NOT lease well. The way I look at it you're paying $3500 / month for 5 years and STILL OWE $79k to buy it out. With the above illustration your vehicle is paid off in full after 6 years and your title is in hand. See attached link to car payment calculator (just note I inputted a lower tax rate percentage to keep the total applicable tax as close to the true # as possible).
I got 1.79% 60 months with 15% down.
To me it was a no brainer. Didn’t even ask about lease options but I bet monthly payments would have been about the same.
Excellent breakdown simply made. Expensive deal. So own for 4k or lease for 3.5K, easy choice. If I pay 213K for anything I want to own it.
Personally I won't lease anything more than 30/36 months. Anytime you go 4-5 years plus owning always better IMO. With the current market, G ownership is the way to go.
As for your accountant, not sure what he meant by "depreciated as a lease". If for business use you can write off the entire lease if the vehicle is 100% business which is fine, however if purchased you can write off 100% of the value through IRS section 179 year one assuming its all business. Thats a hell of a write down.
this. You lease sedans and finance/buy the suv over 6k gvwr for business.
I also don’t go past 36/39 month for leasing either. That’s usually the sweet spot in terms of leasing.
unless of course it’s a MY19+ G, which for those of us who paid MSRP has turned into a remarkable investment.
Sure. You realize you can buy a lease out at any time? The leasing company take the risk. You also only pay sales tax on the payment instead of the entire purchase.
10-04-2021 | 03:35 PM
