So, I been digging around and saw something unusual,
For example this one
http://www.carfax.com/VehicleHistory/p/Report.cfx?vin=WUAKBAFX6H7903403&partner=CDM_U
This is an Audi R8 with 3 owners, with first was corporate and then the rest of the two owners are both leases, how is this possible?
Well if I didn’t want to pay California sales tax on an Audi R8, I’d have my buddies (out of state) corporation buy it. Then I’d have him transfer the title to himself. Then I’d have him sell it back to me at a sweetheart deal.
And it’s all legal…
“Only the little people pay taxes”
Plenty of companies out who lease used cars. In this case it is a “Lux- Sport” car so the can always find someone with the disposable to want to play. Another note is the limited mileage per lessee.
how do you find these companies? If you look at the link above, I think the second lease was from Audi itself…
Google in your local area. In Austin Texas we have one called Continental and North Texas has E Car One. On a side note these leases fair better if you have a LLC as you can right off some of that $$. Good Luck
GM will lease some of their used cars…from those that have done it, the leases are not really all that attractive though.
I cannot for the life of me understand wanting to lease used.
People think it will be cheaper because most of the residual hit has been done. Most of the time, however, you can find a better deal new + be covered by bumper-to-bumper warranty vs just the powertrain.
@Rainy1990 example above is a perfect example of what people lease used that might make sense. An R8 or a Bentley for example are cars people lease for fun. Usually these leases are short term and low mileage. These are also deals that are not going to be what folks usually are aiming for on this site like the 1% rule. IMHO If you have play money play!
To me, a big portion of leasing is the warm fuzzy from the warranty. If you want used, get a 2 year old lease return and finance it.
Leasing is a luxury for those who don’t mind unending payments. You wanna save money, finance used.
Even better…pay cash for used.
Unless you think your S & P index fund will pass whatever the interest rate on used cars is.
Historically speaking, it will. Borrow at 3.5% and invest at 6% or so.
Yikes! I guess used car rates are closer to 4.7%. I stand somewhat corrected. Hadn’t checked them in a while.
For the most part, no. Beside the way that most banks don’t manage utilized auto renting, it’s considerably less worthwhile for you since the auto has effectively taken the significant deterioration hit so the differential between the expense to purchase and the expense to rent is substantially littler. It is greatly improved to back an utilized auto.
The problem with used leasing is that it is complicated for the dealers. It requires a lot of work by the dealer to figure out which vehicles have can pencil into sellable payments as a lease. Each RV must be calculated based on a generic $ value and then gets adds and deducts for optional content and mileage at inception.
That works for most folks. Doesnt work for someone with lots of $$$ or wannabe who likes to live the life of the rich and famous for a year.
Leasing super luxury is either you dont care about money or you care what other popele with lotsa money think.
Or you have a decent income and enjoy driving things that are more fulfilling and gratifying than an appliance.
Some folks golf, some enjoy fine wine, some folks like art, and some people dedicate a portion of their discretionary income to soul-stirring automobiles.