tag:blogger.com,1999:blog-38606399.post6949177058278835880..comments2023-09-23T00:38:53.296-07:00Comments on Money and Such: To Buy or Not to Buy, That Is the Question...Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-38606399.post-79049881472074656712007-05-07T14:43:00.000-07:002007-05-07T14:43:00.000-07:00It depends. I asked this question because a frien...It depends. I asked this question because a friend has a leased car from a company in their name. Nice bonus perk and it's not like they are going to turn it down, so lease it is.Living Almost Largehttps://www.blogger.com/profile/06594523259748625997noreply@blogger.comtag:blogger.com,1999:blog-38606399.post-44434219687864554892007-04-06T08:39:00.000-07:002007-04-06T08:39:00.000-07:00All excellent points. I can't say that I am famili...All excellent points. <BR/><BR/>I can't say that I am familiar with the tax consequences of leasing a car.<BR/><BR/>Regarding losing money on both purchase and sale of the vehicle, personally I don't have a an issue because I only sell a car when it's value has basically declined to zero, so any loss is minimal. This strategy is not appropriate for everyone.<BR/><BR/>Regarding the car manufacturers. I am not sure. That is a statement that needs to be tested empirically. I am not sure that car companies have an incentive to offer a better deal on credit terms than they do on cash transactions. I suspect you could probably get a better or equal deal by buying your car outright using cash.Shadoxhttps://www.blogger.com/profile/08932074837479954410noreply@blogger.comtag:blogger.com,1999:blog-38606399.post-11449212443493496872007-04-05T21:37:00.000-07:002007-04-05T21:37:00.000-07:00Good post. Here are a few remarks/questions:a. It ...Good post. Here are a few remarks/questions:<BR/><BR/>a. It is proven that the best financial option is buying a used car and driving it into the ground (could be 5-8 years before the car goes beyond economical repair)<BR/><BR/>b. I was thinking leasing may be interesting because of tax issues:<BR/><BR/>a. when you buy a car (new or used) you pay 8% tax (i live in CA) right off the bat on the whole car. This is a pure loss since you do not recoup any part of it when you sell. When you lease, you only pat tax on the depreciation (typically 30% of the car)<BR/><BR/>b. Assuming you are not a master negotiator and/or you are buying at a dealer, you stand to loose money when you buy AND when you sell. With a lease, you are looking at a one time transaction.<BR/><BR/>C. Car manufacturers often throw out great deals on leases since they get both the money on the car and the financing. It is easier for them to give you an overall better deal when they have both margins to play withJoel Rotemhttps://www.blogger.com/profile/15890593400918255419noreply@blogger.com