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!


#50

Good leases to move out undesirable junk.


#51

Pacifica is one of the worst rated cars. Sienna one of the best rated. That’s why You get si called good deals on crappy junk.


#52

I paid $224 a month on 14 sienna lease 2 year lease. Got another one same options for 3 years in 2016 $387. I have to turn this one in and they’re saying $500 for a new 19. I can buy it for that price. Wtf


#53

yea but who actually wants to own one?


#54

Minivans aren’t the worst purchases, they hold their value surprisingly well and are very flexible vehicles for families. It’s not the most glamorous vehicle, but has a whole lot of pros when working with a family of four or more.


#55

Yeah there’s only 3 types of vehicles I’d consider actually purchasing…a minivan, a truck or any Lexus. I don’t particular want any of them right now so I lease! :slight_smile:


#56

I have a new bmw 540i and a 2015 Ford Explorer sport and the sienna is amazing at comfort and reliability. We drive around the country and it is very comfortable and practical. Just hate to pay $500 a month for a lease when I used to pay $240 a month.
This one is a 2019 and they’re taking $5000 off the sticker. AWD too
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#57


#58

Is it inflation? – rates haven’t substantially spike. My guess is the incentives are not there anymore


#59

Interest rates have gone up. DCU rates for 72 months are 5.74%. I paid 1.24% in 2015 for my explorer. The higher rates affect lease payments too


#60

1.24% for 72 months. Holy smokes.


#61

Sorry my bad 1.24 for 66 months


#62

I saw a really cheap pacifica on here a while back something like $249/mo