Deal check - Thoughts on bmw x5 60i lease offer

Ask the Hackrs
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21

And then buying out for an above market price.

If this is the vehicle op wants, better to finance it from the get go.

22

Primary leasing for business tax benefit. I will be buying the vehicle at the end of the lease. That being said, do you think it makes any sense to look atca longer lease ie extend the tax benefit and reduce residual.

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23

Other than hiring a broker, i assume the only wY to 8% off is to find cars that most peeps dont like, but u do.?

24

Or color combinations that are…limited in their audience.

Like a red on cognac or brown on ivory.

25

You have to run the math with your estimate tax benefit/savings with a purchase - recapture when you sell vs lease +/- buyout later.

In my mind, if you’re significantly overpaying for the car with a lease, you will have negated the tax benefit.

Also in VA you will have paid full tax on a lease and when you buyout I think you will owe tax on the residual too. So you’re paying 1.5X the tax.

If you plan on keeping it for a while and can write off th purchase, I would seriously look into purchasing it.

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26

Have you tried @IAC_Scott or @Ashleigh ?

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27

Don’t have one out of east atm but we might be able to fulfill it out of south.

28

You get the same tax benefits on a used vehicle. May make sense to find one that is +/-2 years old and already has depreciated some. BMW forums will have great recommendations on extended warranties.

29

People usually overestimate the benefit of “writing off” and underestimate how much it affects cash flow.

If your business has a 25% effective tax rate, spending $60,000 will save you just $15,000 on taxes.

Spending $30,000 will save you $7,500 on taxes.

Which is better for the cash flow of the business?

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30

This and you still owe back the taxes on whatever the vehicle sells for down the line. So if you drive it for 5 years and it sells for $35K you owe tax on that amount.

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31

Don’t forget I’m here now. :slight_smile:

@wilber123 Happy to help and have a few available!

32

Sorry…only reason I mentioned @IAC and @Ashleigh is because I’ve had dealings with them in the past. I won’t forget you :grinning:

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33

It’s still me, haha. I am just under them now, no big deal. This account is going to be sunset soon.

34

Can you please pm me? I would love to get additional information.

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