sdg1871

Not better rates. They are referring to the tax deductibility of leases.

MuffinFlavored

how “legal” / ethical is it to deduct $120k sports car in a business?

sdg1871

You have to talk to a tax accountant or tax lawyer. I don't have a business for which I can take this deduction and I think often the deduction is not a full deduction but a partial deduction depending on amount and type of business use, value of the car and stuff like that. For example if you were a real estate agent showing clients around to fancy houses you might have a better reason to take a full deduction

Yogibara

5.9? Really?! is that for financing or lease?

bobblehead

I am in Canada. The first year of W213 E63S lease rate was going for that much. Finance rate was 1% cheaper. Fast forward to today ... MY2020 with the pandemic event going on now, the lease rate is 5.29% for 36 months. Finance rate is 3.29% for up to 60 months.

usc96

36 months x $1,800 - $64,800
36 months x $2,200 - $79,200

I know what I paid for my W213AMG (E53 Cab) and if we are using either of those example lease numbers, I prefer to own.

stratman

Bought for cash. These things, like the M class BMWs drop in value like a lead balloon. However, they are all great cars it's just that the market for them is rather small. After all, who needs 600 plus HP? Well, for those of us who buy or lease these machines we do, especially in wagon form (my bias)!

NYC365

Leased

Rather beat the hell out of it and then get something new... let it be someone else's problem after. I knew it was going to be more expensive than buying it cash and then selling it. It certainly adds up in addition to the lease with 2 monthly garages in Manhattan that I pay for to park this car while I daily it. Race mode 24/7 doesn't help my MPG either lol. They're depreciating assets at the end of the day, so if you can have fun with them, go for it!

I wouldn't do it any other way!

kponti

Bought my last one, kept it till almost 90k miles, and enjoyed every second of it. Will lease next one though cos my driving mileage-wise is dropped considerably and the itch for a new car is getting too hard to ignore at the 4-year mark

Michael Khan

I own by, financed it but I pulled some strings and financed mine using bank of america lol

Sixpaqs

Own mine, financed through MBFS since it was a ED, I couldn’t get outside financing. Should be paid off end of year.

Sixpaqs

Own mine, financed through MBFS since it was a ED, I couldn’t get outside financing. Should be paid off end of year.

Hiflyin20

I lease as well. I drive it hard and never have to worry about maintenance except for tires. I like driving something new every few years. I would never want to own an AMG or M outside of its warranty.

MuffinFlavored

things to worry about regardless of leasing:

tires/alignment
brake pads
rotors
oil/fluid/filter changes if you didn’t get prepaid
rims if you curb them
windshield if it cracks/chips
hood/body if it dents

technically our car has a bunch of clutches too. i wonder when those go bad? but yeah us leasers and financers alike are on the hook for quite a lot of subtle stuff

hyperion667

And don't have to worry about wind shield washer fluid either

lawguy

Why I laugh at people who buy CPO AMG and BMW M cars...

places

Well I certainly wouldn't "laugh" at them, I'm sure you're not perfect but I do agree in that these cars are best bought new. I would never buy one used.

HBerman

Leased. It doesn't make sense to me to finance a depreciating asset that that will be always under water (value vs finance balance). The residuals on the AMG's are so bad that unless you plan on keeping the car for 7 years, leasing comes out better. With regard to MBFS taking a $20000 hosing, remember that the leased car is an investment on their books and they are taking full deduction on the asset. The last that I looked, the residuals on the wagon were 56% for a 3 year lease and 12000 miles.

Yogibara

Seems like the customer is getting hosed regardless whether they finance(new/CPO) or lease an AMG.

places

Yes, I think this is accurate. Nothing cheap about AMG vehicles. Pay to play.

hyperion667

Pay to play......and then pay some more

kponti

Bought a few off-lease AMGs, nothing especially wrong there, no issue a new one wouldn't have anyway. Especially since it is under warranty and everything is repaired at MBs dime while I beat on it for a few years.

Quackledork

The rates are the same for businesses and individuals (usually). The big benefit is that the lease can be an expense in your business.

If you own a S-corp or a LLC, you are only taxed on the profits of the business. If you run a small loss every year, which is normal for small businesses, then that loss passes through to you personally on your taxes. That means you can lower your gross income, and therefore lower your tax burden.

If you lease a car personally, then its just a personal expense and it has no tax benefits at all. If you put it through a business, it shifts the cost to a different place, where it can help you.

Leasing cars through the business is a very common thing to do. However, you do have to actually have a functioning business. What can get you in trouble is if the business is just a shell for this kind of trickery.

MuffinFlavored

why the heck does US tax law allow you to write off a $120k v8 twin turbo sports sedan equally as to say, a utility truck for work?

bobblehead

In Canada, we can write off $10,840 Cdn lease payment annually ($8,200 roughly in US $) for business owners, people requiring a car for their employment purposes (or in the form of car allowances given to them), etc

Not a lot of $ but better than nothing 😃