Recession car deals

[RX_EVOLV]

When my parents bought their NX they had no problem getting additional discounts from the dealership on top of manufacturer incentives.

[Aleks]

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That's awesome, I didn't know they got that low. Actually makes $400/mo sound really expensive for a $70K vehicle Should only cost around $320/mo with the same proportions as your deal.

2 years vs 6 months is a big difference. Thats like a 95 % residual after half a year.

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So you are telling one can lease a $70K truck for less than $400/mth?

I looked into this a while back with the same beyonder and the deal is real. The only thing I think I recall is that there is no buyout at the end, as the truck must be returned to them. But yeah for a 70-80k vehicle you wont find a a better monthly payment for 6 months.

[ExtraSlow]

I also looked into this with the same beyonder and yes the deal is real. The trick is that you cannot buy it out, so all the earlier arguments about leases being equivalent to finance because you can always buy out do not apply here.
You pay your payment for the term and do not build equity or have a vehicle at the end of it. It's better thought of like a pure rental.

Still a great deal for the right person, but not comparable to traditional leases where you have the option of keeping the vehicle at the end.

[shakalaka]

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I also looked into this with the same beyonder and yes the deal is real. The trick is that you cannot buy it out, so all the earlier arguments about leases being equivalent to finance because you can always buy out do not apply here.
You pay your payment for the term and do not build equity or have a vehicle at the end of it. It's better thought of like a pure rental.

Still a great deal for the right person, but not comparable to traditional leases where you have the option of keeping the vehicle at the end.

Are you sure? I mean it is possible but AFAIK there are two types of lease open ended and close ended. The latter you have the option of returning the car (or buying it out) at the end of the term. With open ended a set residual amount becomes due right at the end of the last and you just can't return the car and walk away.

I wasn't aware of this third option that you have no choice but to give the car back.

[killramos]

The dealers just want the cars back as quick as possible to ship them south of the border and make a quick buck.

They just can’t do that with “new” vehicles due to their deals with GM.

This option is only valuable to the dealer in very select circumstances.

[ercchry]

Unless something very unexpected happens I don’t know why the hell you’d buyout a lease. If you want a long term vehicle you should just finance it

[ExtraSlow]

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Are you sure? I mean it is possible but AFAIK there are two types of lease open ended and close ended. The latter you have the option of returning the car (or buying it out) at the end of the term. With open ended a set residual amount becomes due right at the end of the last and you just can't return the car and walk away.

I wasn't aware of this third option that you have no choice but to give the car back.

You are welcome to do your own research. I didn't get far enough to read the fine print. This was a verbal conversation and my own imperfect memory.

[killramos]

Lease it for a few years to see if you like it, buy it out if you like it.

Again so long as the interest rate and payment is right I see no downside to leasing.

[shakalaka]

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Unless something very unexpected happens I don’t know why the hell you’d buyout a lease. If you want a long term vehicle you should just finance it

Here we go back to those tax reasons. Leases a large portion of the payment can be written off, where as financing you depreciate the vehicle. I understand the former option allows you more write-off than the latter depending on the vehicle and payments.

Second, I believe finance shows on your credit file as a liability where as a lease does not. I found this out recently when I was talking to my banker about the mortgage process. He said it's better to have a lease rather than finance for the aforementioned reason.

I am sure there may be other advantages too as sometimes leasing has more aggressive rates and lower monthly payments.

[ercchry]

Uh, no... both are reported to your credit in the same way... if the financing companies report that is

[shakalaka]

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Uh, no... both are reported to your credit in the same way... if the financing companies report that is

Well just telling you what I was told recently. Theoretically makes sense to me considering lease is thought to be a a rent and finance you own the vehicle. So the financial liability being lowered/restricted on something that you don't own vs something you own makes sense to me. That being said, I don't know for sure - just what I was told.

[ercchry]

No... you know what I do for a living, right? Haha

The most important part that lenders look at is payment as both show as instalment loans... yes the balance remaining would be lower on the lease but balances are only important on revolving loans and you must calculate monthly obligation of their balances

[Tik-Tok]

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Unless something very unexpected happens I don’t know why the hell you’d buyout a lease. If you want a long term vehicle you should just finance it

See my previous post. For the right vehicle, you can buy out the lease and turn it around for profit, just like the dealership would if you didn't buy it out.

[Buster]

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See my previous post. For the right vehicle, you can buy out the lease and turn it around for profit, just like the dealership would if you didn't buy it out.

this just means you overpaid on your payments (by definition)

[austic]

some crazy advice in this thread about writeoffs.

Buster is right that if you are going to do anything Luxury or better charge millage and it is next to impossible to pass an audit claming milage from your home and office even with registering a home office.

Trying to write off an exotic with two and from work? That is a bold move fore sure.

I had an friend try that with his S class and cant remember what the re assessment was on it.

[Buster]

Trying to squeeze a few extra bucks out of questionable write-offs just isn't worth it.

[killramos]

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Trying to squeeze a few extra bucks out of questionable write-offs just isn't worth it.

“You just spread...”

I live my life by the mentality that I only have the right to complain about how much taxes I have to pay, if I actually pay every dollar of what I am supposed to.

That said, Tax dodging is a great Canadian pastime. Though we are amature hour compared to the Europeans.

[Buster]

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“You just spread...”

I live my life by the mentality that I only have the right to complain about how much taxes I have to pay, if I actually pay every dollar of what I am supposed to.

That said, Tax dodging is a great Canadian pastime. Though we are amature hour compared to the Europeans.

Exactly. Better to go big on things that are harder to spot by the CRA than small things that are easy.

[Rarasaurus]

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Exactly. Better to go big on things that are harder to spot by the CRA than small things that are easy.

Examples?

[killramos]

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Examples?

Asking for a friend. lol