| Casanova |
What sort of options would you suggest for someone buying a new car?
Lease, buy or purchase outright?
What is the max downpayment you can put on a car?
Would it be better to buy a car that is like a year old, pretty much brand new but just last years model? (2004) and already had that depreciation of it leaving the lot? |
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| DrunkenGoddess |
don't forget there's also the option of buying last year's model (as a new car, though) b/c they sell them cheaper when getting rid of them at the end of the year!
since they're selling '05s, look for '04 leftovers :) you don't get much choice in details though.. my dad would've goten a great deal last year for an altima but he didn't like the colour and the lack of options on the car. look around, it's like.. the sale rack at the clothing store. what you see is what you get; nothing left in the back in other sizes; (sorry, i'm a girl and you must understand most things get related to clothing and shopping for us :p ) |
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| Casanova |
| haha nice analogy... yah well I was thinking of getting a car like a year old... but again the options are limited.... but I dont want to get anything older than 1 or 2 years... |
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| DrunkenGoddess |
get a car that's as new as possible!
i dunno if it's just me but my bf and i keep wondering how many ppl have gotten it on in the back of a used car :rolleyes: |
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| Casanova |
| haha your mind is in the gutter... my reasoning for going new from a dealership would be maintenance and warranty |
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| ehos |
| You should for sure lease. You can get into a new car every few years if that's what you're after. |
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| Casanova |
I do outside sales so always traveling
Looking at the mazda 3
am concerned that if I buy used I will have more maintenance costs |
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| 98 teg |
| If it were my persoanl car then finance it, as for being 04 vs 05 depends on te changes on the models...work related then it boils down to CCA and being able to write of the lease pmt. |
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| TrevorK |
quote:
Originally posted by Casanova
I do outside sales so always traveling
Looking at the mazda 3
am concerned that if I buy used I will have more maintenance costs
Sounds like you're deducting the car, which usually makes leasing the way to go.
And you'll never have any expensive maintenance when leasing... |
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| Casanova |
Sweet, thanks guys.
Another concern I have is buying from a dealership (whether 04 or 05) people tell me not to... I imagine because of the initial depreciation and tax .... but if I am leasing... then its not really a big deal....right? |
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| Bad Egg |
quote:
Originally posted by Casanova
Sweet, thanks guys.
Another concern I have is buying from a dealership (whether 04 or 05) people tell me not to... I imagine because of the initial depreciation and tax .... but if I am leasing... then its not really a big deal....right?
...err, not right. I am not bashing leases, I have one myself. You should be aware that leased cars depreciate the same way as the ones bought outright. Once you drive a lease vehicle home you will owe more on it than it is worth for at least a couple of years. At a certain point after that your car will usually be worth more than you owe. That is why there is such a big market in lease returns. The book value on my leased car at lease end is several thousand more than my lease buy-out.
That is why you often need extra insurance for a leased vehicle to cover the "gap" between it's value and your financial responsibility.
For someone who is using a car for work, can write off part of the lease, and likes to have a new, reliable car, it can be a cheaper monthly alternative than purchasing. |
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| Casanova |
So being that I will be using the car for work, it wouldnt be advisable to just purchase it outright because if I lease I can write the payments off?
I mean the amount of time I will spend in my car, I need a car I can drive alot and be comfortable in and not have to worry about maintenance. I guess it would make sense to lease it then and get a new car every 2 years.... But there is a limit to the km you can drive per years is there not? how much is the overage charge? is it minimal? someone told me if you drive 12 000 km over it is only 1000 dollar overage charge |
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| Jord@n |
The kilometeres you are allowed to drive depends on the car, the dealer, and your personal choice when you purchase the car lease.
I think the average kilometers they offer is 25-30KM a year.
Also you will pay per kilometer you go over after the limit. I am not sure but I think its like .25 cents per kilometer over, which adds up fast if you go a lot over.
If you are serious about leasing a vehicle, make up a list of vehicles you think you would be comfortable in and you like since you will be driving often. Then go to those dealerships and ask them about the details, since they will know exact details.
Try looking at this link for pros and cons of leasing:
clickie!
:bthumbup: |
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| Casanova |
I am looking at the mazda 3.
Thanks for the link man! |
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| Z32NUT |
quote:
Originally posted by ehos
You should for sure lease. You can get into a new car every few years if that's what you're after.
Leasing is good if you own a business. At least then you can write off the payments. If you don't, it's just like renting. You're driving someone else's car and at the end of the term you end up paying HUGE for every thing that's worn on the car. From a chipped up windshield to worn belts.
I did a lease to own on my last car. Pay over 5 what you normally would in 3, with a balloon payment at the end of the 5 years. If you can restrain yourself, you can put away the balloon payment a bit at a time, collect whatever you can get on interest, then pay it off at the 5 year mark. Best of all, no end of lease "inspection". |
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| Bad Egg |
quote:
Originally posted by Casanova
So being that I will be using the car for work, it wouldnt be advisable to just purchase it outright because if I lease I can write the payments off?
I mean the amount of time I will spend in my car, I need a car I can drive alot and be comfortable in and not have to worry about maintenance. I guess it would make sense to lease it then and get a new car every 2 years.... But there is a limit to the km you can drive per years is there not? how much is the overage charge? is it minimal? someone told me if you drive 12 000 km over it is only 1000 dollar overage charge
You should be allowed to write off vehicle depreciation (on an owned vehicle) as a business expense as well. It may be worth your time to get some tax advice so you don't miss any expense deductions. |
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| TrevorK |
quote:
Originally posted by Bad Egg
You should be allowed to write off vehicle depreciation (on an owned vehicle) as a business expense as well. It may be worth your time to get some tax advice so you don't miss any expense deductions.
You would need to inquire then as to whether you will be taxed when you sell the car after you've depreciated it (As it'll be a business asset)
Typically business owners/people who deduct their cars lease. |
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| 98 teg |
when you own the compay car it falls under a class 10 which gets depreciated at 30% a year except in the year of acquestion where it is only half (15%) first year 30% thereafter.
There is a cap of 30000 for company cars which are owned.. As for a lease there is a formula used to calculate how much of the lease pmt can be written off. I f you are looking at a Mazda 3 you will be fine. The only reason the feds have that is to prevent companys from leasing high end cars as company cars..
As for the depreciation Insurance dont get it since you dont need it. Car makers are basically tring to predict what a car is going to be worth a few years down the road.
Chyslers few years back really pusehed leasing anf they took a huge los since the cars were worth less than the buy out and people just walked away from it.
Oh one thing just make sure it is a lease you can walk away from and the end of the term.
hope this info helps |
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| Casanova |
| Thank you all I appreciate it! |
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| 98 teg |
quote:
Originally posted by TrevorK
You would need to inquire then as to whether you will be taxed when you sell the car after you've depreciated it (As it'll be a business asset)
Typically business owners/people who deduct their cars lease.
Thats if you own the car and you write if off in the CCA pool and then sell it it becomes a CCA recapture and it is considered income for the company sice you sold a 0$ asset for money.
with a lease you dont have to worry about it. |
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| TrevorK |
quote:
Originally posted by 98 teg
Thats if you own the car and you write if off in the CCA pool and then sell it it becomes a CCA recapture and it is considered income for the company sice you sold a 0$ asset for money.
with a lease you dont have to worry about it.
That's what I was referencing - the people who said to buy the car and depreciate it. |
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