I agree with this, I think I would take a hit when trading it in again. The exact situation I’m in with my c63 right now
Taxes are a big issue when buying then selling after just 1 year. That’s ~$6k that’s lost.
1 Like
Also I’m self employed so I can write off my lease as a expense at least 90 percent of it
Flipping a $1k p/m C63S in Socal? I’d be surprised if that’s difficult
@Jon I’m talking about flipping the lease after a year, how does that affect taxes?
Oh, I thought you said finance it, not lease.
Oh he could do swapalease
My advice work on that money factor and pull the trigger
We shall see, trying to see if they will
Bump me up now at the dealership. From .00290 to .00260
Isn’t tier 1 around 750+?
That discount is nice
Tier 1 is 700 plus… tier 1+ I think they call it is high 700s to 800
I don’t understand the hesitation to finance here. Total lease payments + acquisition and disposition fee would get you close to 39K for 3 years off a 62K purchase price with a buyout of 36.7K. If you were to purchase after 3 years, you’d pay a total of 77.7K after 3 years.
If you were to finance at 3.5% on a 67K loan w/ tax included, you’d be paying 1200 a month and at year 3, you’d owe ~27.5K on the note after having made 43.2K in payments. If you were to buy out at that point, you’d pay a total of 70.7K after 3 years or roughly 10% less.
You can also depreciate the car so the tax argument is not as persuasive as some would make you believe. You get some level of tax deduction either way since you’re claiming the car as a business expense, and when you dispose of the car and recognize a book gain or loss, those are tax deductible. Either way it works out to close to the same tax deduction, with an acceleration of the deduction for leases. That’s not to say that there isn’t a benefit to structuring a contract as a lease, it’s just not worth paying 10% more on the deal because of marked up interest (I am an active & licensed CPA in the state of California).
4 Likes
How much would I save if I financed I’m alittle confused…
Also do I still have to pay this years taxes on the purchase price
Closed the deal tonight boys
I’m pretty happy with it, I know it’s not hacker worthy
I went with another car
Msrp price 77800
Sales price: 65,100
Money factor: .00290
Drive off: 2100
Monthly is 1080 with tax
3 Likes
Enjoy your new vehicle!
1 Like
It’s not a hackr car. Period. A hackr car is a thrifty car like an good BMW X2 loaner or a loaner E300.
I think you did a nice job on this though. Good discount.
2 Likes
Car looks good congrats
1 Like
That’s a beauty of a Benz. Enjoy it. Good dealership, too, in my opinion.
Bet she sounds amazing. That German V8 growl is intoxicating.
1 Like
Congrats! If you ever want to venture upwards abit their sister store, I’ll be glad to help you out!
nice purchase! I just leased an Audi S5 and its also hackr worthy but great car! enjoy!