Good days of Leasing are over


#42

Just remember that most of this can be thrown out the window now. Interest rates are up. You can deduct mortgage interest, to an extent, but it’s greatly limited by the tax “cut” and depends on what state you’re in, e.g. if you have an income tax or not.

You might want to quote something recent, not over 2 years old…


#43

This doesn’t make sense to me. The GOP tax reform has nothing to do with leasing vs buying (either way it makes my loathsome VA annual car taxes 30% worse). Mortgage interest isn’t relevant to this debate. Interest rates matter but this impacts both buying and leasing though manufacturers often subsidize financing in both areas.

I do think that if the economy doesn’t slow down/Trump can’t strong arm Powell into not raising rates cash buyers will at least stop being at a disadvantage. I recently bought an Accord and had to finance at 1.9% to get any rebates. So I did five years at 1.9%. When I bought the car, the 5 year t-bill rate was just under 3%. So Honda forced me to take a heavily subsidized loan in order to get any rebates. This doesn’t make a lot of sense.


#44

That actually is nowhere near what I said.

The posted article suggested taking out a home equity loan to BUY a car and writing off the mortgage interest. If you already have a mortgage and/or live in a state with income taxes, depending on how much tax you pay, you are limited to $10,000. Depending on your overall tax position and other deductions, the standard deduction is better for you.

With interest rates being up overall, lease rates are up too.

Also, if you do not see signs of the economy slowing down or at least correcting, I’d love to see what rock you’re living under.


#45

There was one sentence about taking out a home equity loan to finance a purchase. I missed that line
but its a horrible idea for most people since it turns an unsecured car loan into a loan secured by your house.

I think the economy will be great short and long term and everything is wonderful. No trade wars or Normal economic ups and downs are suspended. My gold plated cave is tremendous. Of course I joke, an economic slowdown is overdue. Good days of leasing could easily return for those fortunate to have cash to spend.


#46

At the risk of appearing pedantic, a car loan is not unsecured. The car is the collateral.


#47

You sir are correct, that was a mistake on my part. But my bigger statement stands. I wouldn’t want my house being collateral for my car payment.


#48

I agree with that sentiment wholeheartedly!


#49

It’s been said many times on this forum, finding a good lease isn’t necessarily about leasing the car that you want, but rather the car that the manufacturer wants to get rid of! Each manufacturer handles their leasing programs differently, some brands don’t seem to lease well across the board. Target the brands that historically lease well (personally I have had excellent luck with Chevrolet, and nearly as good with Toyota ) do your homework, watch and wait. When the time is right, start making calls, emails, make the dealers compete, know your #s and reap the rewards!