What car do you drive? Did you lease, purchase/finance, or pay cash?

[panda]

I may be pretty savvy when it comes to Real estate investing but when it comes to cars... I am not very smart. So....  8)

I am curious to know what car TI members drive and how did you purchase your most recent car acquisition?
How much was the sticker price of your car. What is your satisfaction level of the car you drive?

I can be frugal with pretty much everything and anything, but when it comes to cars... I kinda want to go all out like Trojan man. I've been shopping around, negotiating with dealers for about a three weeks now and still haven't secured anything yet.

 

[panda]

Sorry, the first option should read, "Purchase a brand new car valued at any price with cash"

 

[nosuchreality]

It depends.

If you own a business there may be tax advantages to structuring a lease thru the business. Or it may just be more hassle. 

Otherwise I'd say go the $30k route. If you can get the financing at 1.99% and have investments paying better than 6% I'd say finance it. Otherwise pay cash and bank the equivalent payment

Under no circumstances step up to the higher priced car because you can make the payment. They are depreciating assets    The level of car you should buy is the level of car you re comfortable making a total cash purchase on.

JIMHO

 

[nosuchreality]

Sorry misread the poll looks like all options are for $30k or so equivalent price


In that case buy the best car that suits your needs

Note at the moment, used cars are hot sellers and not very good deals for those that aren't problematic

I myself prefer new and driven 5-10 years depending on how they hold up

 

[panda]

Since Trojanman loves cars and is also CPA, I would love to get his opinion if it is better to buy or lease for tax purposes when you have your own business. I agree not to step up to the higher price brand $60k - $70 brand new. If you had bought a brand new X5 BMW 4.4 for $67k in 2003, today the residual value is like $7000 : Almost 90% depreciation in 10 years. That is like buying 6000 CISCO stocks in 2000.

I really like the new 2014 Hyundai Genesis. I test drove it and it drives better than a Mercedes E350. It is very very nice car, but my wife won't let me get a Hyundai.

It depends.

If you own a business there may be tax advantages to structuring a lease thru the business. Or it may just be more hassle. 

Otherwise I'd say go the $30k route. If you can get the financing at 1.99% and have investments paying better than 6% I'd say finance it. Otherwise pay cash and bank the equivalent payment

Under no circumstances step up to the higher priced car because you can make the payment. They are depreciating assets    The level of car you should buy is the level of car you re comfortable making a total cash purchase on.

JIMHO

 

[ps99472]

paid cash for mine, $30k about 2 years ago, didn't want any monthly debts to show up except for mortgage and credit cards.  Just in case I find another house.

Once I find that super dream house, I might consider 0% APR

 

[usctrojancpa]

My practical car is a Plug-in Prius which I got a 0% loan and my fun/track car is a Porsche GT3 RS (paid cash) but I might get a 2.49% PenFed car loan on it as I'm looking to have funds to buy a house for my dad in Vegas.  I prefer to buy late-model low mileage used cars from private parties as I get the best deals and turn them around to sell them and not lose much (only reason I bought the Prius new was to get the tax rebates and the carpool sticker).  Nothing worse than buying new and losing 10-20% when you drive off the lot.  I would never lease as I actually drive a lot and would go over the annual mileage limitation.  I can write-off the business related depreciation, maintenance, registration, etc.

 

[usctrojancpa]

It depends.

If you own a business there may be tax advantages to structuring a lease thru the business. Or it may just be more hassle. 

Otherwise I'd say go the $30k route. If you can get the financing at 1.99% and have investments paying better than 6% I'd say finance it. Otherwise pay cash and bank the equivalent payment

Under no circumstances step up to the higher priced car because you can make the payment. They are depreciating assets    The level of car you should buy is the level of car you re comfortable making a total cash purchase on.

JIMHO

Depends on the car that you buy, the GT3 RS is worth about $20k-$30k more than I bought it for last year. 

 

[Park]

Have you considered an auto broker to get your used car.
Might save more $$. 

 

[homer_simpson]

E350 - Lease, write off.
LX570 - Cash
Lamborghini - Cash


Should wait for JMoney to post, he's got a nice stable at home!

 

[panda]

Lamborghini - Cash - ???  hahaha!! funny guy. Homer, you are my hero  8)

[/quote]

E350 - Lease, write off.
LX570 - Cash
Lamborghini - Cash


Should wait for JMoney to post, he's got a nice stable at home!

 

[panda]

So far
1) Purchase a 2011 $60k luxury car w/ 30k miles, negotiate it down to $30k and pay cash - Dave Remsey style is leading with 4 votes.

How many of you here on TI have purchased a $60k w/ 30k miles luxury model with cash and happy with your decision today?

What make and model did you purchase?

 

[homer_simpson]

I'm a FCB, everything must be cash... I have no credit in 'Merica! The E class is under my wife's name  8)

Why don't you just buy a new $30k car? 

 

[irvinehomeowner]

I've been leasing forever.

Used to be a business write-off but got used to having a new car every 3 years... so kept doing it.

The problem with buying is I always want the newer model and when you calculate down+monthly on a buy versus a lease (with usually little or no down), the cost is the same. I'm on my 3rd minivan and didn't have to put any money down... if they don't come out with a better model (hybrid? EV?), I'll finance the buy-off when the lease ends.

 

[OpenSky]

8)

 

[homer_simpson]

I've got to hide my stacks adn stacks of cash somewhere... Don't need it to appreciate too!!

 

[OpenSky]

 

[OCgasman]

Since everyone has different levels of disposable income, a set ceiling for a vehicle is irrelevant.  Like USC says, leasing only makes sense if you don't drive a lot.  Also, some ppl really enjoy driving and tracking their car, so it's entertainment dollar also, not just to get from point a to point b.  The best answer is to buy the car you can comfortably afford finance, lease or buy is besides the point. 

 

[paperboyNC]

Since everyone has different levels of disposable income, a set ceiling for a vehicle is irrelevant.  Like USC says, leasing only makes sense if you don't drive a lot.  Also, some ppl really enjoy driving and tracking their car, so it's entertainment dollar also, not just to get from point a to point b.  The best answer is to buy the car you can comfortably afford finance, lease or buy is besides the point.

I actually drive one of my cars too little to lease. I drive it less than 6,000 miles/yr.

 

[Optimus(sub)Prime]

Have you considered an auto broker to get your used car.
Might save more $$.

Auto broker is the way to go... save time, save cash. If you're looking for something used, they can pull it from auction for considerably less. PM me if you want a referral -- the guy I know has recently delivered a couple of M5s at deep discounts.