What you HATE the most on your FR-S/BRZ/GT86/FT86?

[V_86]

Originally Posted by Tcoat

Don't know about the U.S. but that is fairly common here.

Maybe you can get a good deal in Canada, but when I've had family try to finance from a lease here in the States, it turns into a really bad deal, sky high monthly payments.

It seems like they want you to pay off the remaining balance in 2 years, since most leases are 3, meaning they want it paid for in 5 years.

[Dadhawk]

Originally Posted by V_86

Maybe you can get a good deal in Canada, but when I've had family try to finance from a lease here in the States, it turns into a really bad deal, sky high monthly payments.

It seems like they want you to pay off the remaining balance in 2 years, since most leases are 3, meaning they want it paid for in 5 years.

When you "buy out your lease" whether you finance it or pay cash, it is a fixed amount of money. It's all about the residual value left in the car. Basically what you are doing 1 year into the lease is buying a one year old used car for its market value. They don't care whether you take out a 1/3/5/8 year loan, unless of course you are trying to finance it through them.


I would find out what the lease buy-out is, and go to a credit union for the loan.

[ogrowup]

not likely. When you lease a car you are basically renting it.
The internal rate is much much higher than financing.( often 12-15% or more) Leasing makes sense if you own a company, and leases can be used 100% as an expense instead of depreciating it.

[StormTrooper305]

~ no privacy for goods in the center console ~ $250 armrest from factory ~ maybe asking too much but a nice knee pad or knee friendly center console would of been nice ~ foot room in back seat, if you're a size 10 or higher, you're feet are getting run over by the seat in front

I still love her...

[dentalprodigy]

Originally Posted by fatalelement

You can't switch from lease to finance? I'm almost positive you can finance a buyout on your lease

Sent from my HTC One_M8 using Tapatalk

There is a buy out option at the end of the 3 year lease term but it always ends up being a pricey option. I will most likely return the car after the lease is up.

[dnieves]

Originally Posted by ogrowup

not likely. When you lease a car you are basically renting it.
The internal rate is much much higher than financing.( often 12-15% or more) Leasing makes sense if you own a company, and leases can be used 100% as an expense instead of depreciating it.

Leasing also makes sense if you don't drive more than 10-12k mi/yr. (depending on your lease agreement), able to maintain your vehicle inside and out (or enough not to surpass your wear & tear allowance), and want a new car ever x years without having to deal with depreciation & selling it to deadbeats or stealerships.


Some view leasing as a form of driving a car you can't afford.


P.S. I've never heard of a end of lease buy out price that wasn't ridiculous -I think they do it so it ensures the dealership they can get you into another lease asap. I read on a forum of people wanting to buy their leased car, given a high firm buy out price then waiting for it to languish on the used car lot for a while before swooping in with a extremely better deal.

[Burrcold]

Originally Posted by ogrowup

not likely. When you lease a car you are basically renting it.
The internal rate is much much higher than financing.( often 12-15% or more) Leasing makes sense if you own a company, and leases can be used 100% as an expense instead of depreciating it.

I don't know where you are shopping but the interest rates are not 12-15% higher. In some cases the lease rates are on par or even lower than a standard finance.


If you really did mean "internal rate" I don't even know what you're talking about then...

[BRZZZZZZZZZZ]

New hate, lack of traction on winter tires.

Damn you Kraftwerks!

[Lateral G]

The key hits my knee while driving. I'm constantly adjusting wheel and seat position. I can live with it but it's a gripe.

[Tcoat]

Originally Posted by Lateral G

The key hits my knee while driving. I'm constantly adjusting wheel and seat position. I can live with it but it's a gripe.

WOW how tall are you? Or conversely how big are your keys?

[Koa]

Originally Posted by ogrowup

not likely. When you lease a car you are basically renting it.
The internal rate is much much higher than financing.( often 12-15% or more) Leasing makes sense if you own a company, and leases can be used 100% as an expense instead of depreciating it.

The advantage of leasing versus owning in the company sense is not that simple. While you indeed CAN deduct lease or leasehold payments as expenses, you do not take into consideration financing's expenditure advantages: MACRS accelerated depreciation, section 179 deductions, section 168 allowance %, and other allowances that frontloads the depreciation expense allowed by the business to take. Also remember that throughout the life of the lease, you are effectively amortizing the vehicle anyway. The expense per month is the only thing allowed to be taken. One can't lease and then frontload the whole expense up front like straight out buying and then utilising the aforementioned allowances and deductions can.

In many cases, this modified depreciation amortization is favorable to leasing IF we, the business, only are after maximum tax shielding through expenses.

As with everything, it's not as simple as that, and contrary to popular belief businesses' most effective tax strategies don't simply look for how much they can load on the expenses and conversely shield from taxation. If you want to get really into it, research is showing that is adverse to the business to think in that mindset; even further, it is showing that tax incentives for businesses to load up on depreciable assets and cap expenditures aren't driving growth how the bill makers envisioned it would- particularly at the small to medium business level, which covers the vast majority of businesses in the U.S. I got a bit of literature on the subject if you want any thrilling bedtime reading

source: accounting manager for a billion dollar distribution company

[Dadhawk]

Originally Posted by Koa

...As with everything, it's not as simple as that, and contrary to popular belief businesses' most effective tax strategies don't simply look for how much they can load on the expenses and conversely shield from taxation....

I never have completely understood the "spend more money to avoid taxes" thing anyway. I realize business rules are more complicated than personal finances, but its like I explain to people that don't quite understand why I was happy to pay off my mortgage, I'd rather send $100 to the government than pay $400 to a mortgage company to avoid the $100. I have better use for the $300 net difference, and if I really want the deduction, I'll find a charity to give it to.

[paulca]

In the UK the deal I bought the car under was PCP, Personal Contract Purchase. It's a fancy name for "Lease to buy". 3 year lease with a final lump sum payment to own the car or you hand it back and walk away.

Interest rate for the 3 years was fixed at 4.8%, which i current times is very low. Most banks for the same figure (The depreciation on the car in 3 years) were looking at 7.8% or higher. To borrow the whole car lump sum was even higher rate.

Same as a lease if you keep the car in good nick you can just hand it back. They garauntee you a fixed future value. The car might be worth more and you can always use the extra to trade up or drive out in a new one with little change to your payments.

Total cost to me of this deal was 2000 Sterling over the 3 years (excluding the depreciation of the car of course).

Unlike a lease, you do NOT need to sell the car back to the dealer or manufacturer that you took the lease with. If you sell it else where you must clear the fixed future value at the time of sale. So if Toyota will only give me the fixed value of 10 grand and a Mazda dealer down the road will buy it for 12, I know where I'm going.

[Koa]

Originally Posted by Dadhawk

I never have completely understood the "spend more money to avoid taxes" thing anyway. I realize business rules are more complicated than personal finances, but its like I explain to people that don't quite understand why I was happy to pay off my mortgage, I'd rather send $100 to the government than pay $400 to a mortgage company to avoid the $100. I have better use for the $300 net difference, and if I really want the deduction, I'll find a charity to give it to.

To get the most out of one's tax strategy, whether business or individual, one must acknowledge and understand the four pillars of taxation:

Entity, Jurisdiction, Timeframe, and Character. The first three are pretty easy to subscribe, but the last one... the why we do it, is open to interpretation and that is where judges and IRS in particular will pay attention to when reviewing or contesting an action that affects their tax filing.

The Why We Do It must make sense. That "paid off" feeling is not easily quantified, but it is real and has purpose. Businesses must make decisions that have a purpose, and simply construting activities or decisions around tax shielding leaves a lot on the table. There are valid purposes for spending more to enter into a lower tax bracket. Just as there are valid purposes for the business to pay off their entire bank note/loan to skip the hassle and feeling of owing money. Different strokes, which is what makes the world so beautiful and diverse


Just to clarify, I'm no tax guru and I don't make taxation my specialty. I am not a proponent of big government and have sentiments against the IRS as it currently operates. Just trying to spread the perspective