Check my deal? I have never leased before, always purchased

Ask the Hackrs
82

Maintenance consist of oil changes and brakes. Easily doable at an indy shop after free maintenance is done. If one wants to drive a BMW or Mercedes it will cost a bit more in depreciation, than a Toyota, but driving an appliance is no fun.The OP has stated he wants a Luxury brand. Lexus fits that bill but you pay more for a CPO for the reasons you stated of low depreciation. Sometimes the prices for a Lexus CPO is not far from a new with discount. You have to crunch the numbers.

Usually if the car you have, BMW in this case, is fine with out issues you’re ok to keep it. Would I recommend this w a 7 series or similar, no. First year models are not recommended either, if they have new engines etc.

83

Thank you so much! I agree driving an appliance is no fun, and I spend a lot of time in my car. I appreciate you help!

84

This is a potential idea

85

Financing a brand new UX is probably your best bet.

Either way 74 replies later you should have enough info to make up your mind.

Not always.

86

@jeisensc — what is wrong with claiming a car purchase of a heavy EV (6000+lbs gross weight) for commercial purposes (driving to work/meetings, etc.) under section 179?

and I’d be curious how you think this changes the underlying equation of (leasing vs. purchasing) most cost effective/tax efficient way to obtain a car?

i realize this is entirely context dependent, which makes it hard to come up with any rule here.

but for example, if a $115,000 car (e.g., e-tron GT) was purchased for $100,000 with $30,000 down with a 7% loan, the biggest opportunity cost (at whatever point the car is sold) is trade-in or sale value.

the same would translate into lease terms, but with the upside of negotiating everything up front with the downside of never owning anything. let’s assume $775/month $3500 DAS.

the real kicker is if the section 179 can bring down your tax rate and what you prefer (less outlay of cash or more equity).

For 24 months:
Lease: You spend $22,100 with no asset at the end.
Purchase: You spend $63,266, but you have $18,860 in equity.

For 36 months:
Lease: You spend $31,400 with no asset at the end.
Purchase: You spend $79,899, but you have $23,230 in equity.

it gets even more complicated by state. in California, the deduction tops put way lower than the federal deduction.

87

If that’s what you took from the exchange I think you missed the point. It wasn’t simply about a Section 179 deduction.

88

And this is the math that I have been struggling with, that’s why I was thinking to lease this time, I have purchased the last 3 cars wanted to see if leasing is better

89

apologies @jeisensc — remind me? clearly, i missed your point,

90

It was about claiming a commercial use EV credit under section 45W of the IRA as compared to not qualifying for a personal use EV credit under section 30D, on a vehicle where the line between dedicated business use and personal use may get a little blurry.

2 Likes
91

While also claiming the Section 179 deduction (with or with accelerated depreciation), and all of that as a disregarded entity.

1 Like
92

Last year my accountant told me the IRS is looking and verifying more closely at company owned/leased vehicles. She stated you should be 100% by the book legit with it.

93

Instead of the Lexus UX, why not go with the NX, but if you really love cars-then the RX is your best option for roughly $8K more :call_me_hand: test drive it and see the difference

1 Like
94

This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.