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Discussion Starter #1
DID you buy or lease your TSX???

i called the acura dealership this evening in ny and he said that 80% of the people lease.....

i just wanted to know the people who financed vs. the people who leased their new TSX



THANKS
 

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bought... 4% financing - peoplefirst.com not dealer financing
 

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I bought mine.. I want to keep it as long as I can. However, if I want to keep spitting money at a car and change up every couple years, I'd lease a car.
 

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Discussion Starter #7
interesting, dealer made it sound like everyone leases, i currently finance my car ...while i was talking to him about the TSX he said they made limited production of these cars, i was looking for white with navigation and he said it might be hard to find.....he couldnt give me a time span of how long before he could find one but im going to call outside of new york tomorrow, going to try and see whats in N.J.....

larchmont by the way did you purchase your car at the curry, larchmont or bedford dealership....the guy at the larchmont dealership wouldnt even bring the price lower then 27,800 with navigation, the guy at bedford wanted 27,500 and curry acura wanted 27,000....sooooooooooooooo the search continues.....
 

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20042005 said:
DID you buy or lease your TSX???

i called the acura dealership this evening in ny and he said that 80% of the people lease.....

i just wanted to know the people who financed vs. the people who leased their new TSX



THANKS
I leased mine, but for a couple of reasons that may not apply to you. First off, I own a business and can deduct the full payment from my taxes. Secondly, I'm a car nut and get bored easily with a car. For example, if Acura comes out with a AWD TSX with XM radio, I'd want that and know that in 2 years I can have one. Thirdly, I'm no mechanic and hate, absolutely hate to buy tires. I've never kept a car longer than four years in my life. I always thought the technology is on about a four year cycle. I despise repairing a car. I even hate to take it in for oil changes.

Don't get me wrong, I love cars and I especially love this one, but in two or three years, i'll be ready for a new one. And I can deduct it from my taxes. Cars are maybe the worst investment in the world. So I lease.

You might tell your dealer friend that he is full of whatever you want to tell him. 80% of the world buys. Only those of us who can write it off lease.
 

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20042005 said:
interesting, dealer made it sound like everyone leases.....
larchmont by the way did you purchase your car at the curry, larchmont or bedford dealership....the guy at the larchmont dealership wouldnt even bring the price lower then 27,800 with navigation, the guy at bedford wanted 27,500 and curry acura wanted 27,000....sooooooooooooooo the search continues.....
Well, as I said, it's hard to get great deals around here. The reason they don't budge on the price is (I guess) they can get that much, so why should they take less?
I got mine at the Larchmont dealer, i.e. Acura of Westchester. Didn't even think of going anywhere else, as long as they could get me the car pretty quick.

I guess dealers push leasing because there's more money in it. And if you insist on buying, they'll push financing because there's more money in that than in outright selling.

Leasing undoubtedly is the best way to go for a lot of people -- but, I think, not for everybody who thinks it is, because there are a lot of alleged BS reasons going around. For example.............
 

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insman said:
I leased mine, but for a couple of reasons that may not apply to you. First off, I own a business and can deduct the full payment from my taxes.....
Only those of us who can write it off lease.
This is my favorite example. Granted, I left out a lot of the things from the post, including some GOOD reasons for leasing. But I don't think this is one of them.

People say this all the time, that leasing allows you to deduct it from your taxes. Even some accountants say it. But I'm pretty sure it's complete baloney. I don't mean that you can't deduct it, just that IT'S ABSOLUTELY NO DIFFERENT THAN IF YOU BUY. Either way, you can deduct, as long as you meet the IRS's business criteria; the criteria are no different either way. And it's not like you can deduct a higher amount if you lease than if you buy. There's a formula for the maximum amount per year that you can deduct, and with cars like the TSX, you usually run into that limit, either way. If anything, you can deduct a little more if you buy.

I've mentioned this on various forums and invited people to indicate any basis for the belief that there's any tax advantage to leasing. Nobody has yet, other than vague things like "the dealer said so" or "everybody knows it's true" or "all I know is my accountant said so." BTW I understand that there's a loophole that allows huge deductions for vehicles over 6000 pounds (which includes some SUV's) which might make it more advantageous to lease those vehicles than to buy them, or maybe it's the other way around -- I've never gotten that straight. But I'm just talking about "regular" cars, including the TSX.

I hope Insman and/or others will take a swing at this.

Larchmont, who is eagerly awaiting.
 

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bought
 

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I bought mine with the help of a trade in on my 2001 Honda Civic! I dunno why you would lease a TSX/Euro I would much prefer it to be mine, well half the finance companies half mine at least ;) My Arctic Blue, Honda Accord Euro is still due on the 21st of this month that is 9 days to go and counting :wiggle:
 

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Bought. For cash.

But I DID "run the numbers" and I couldn't see any advantage to leasing a Honda product. HMC's internal finance department uses realistic lease residuals, some other manufacturers use residuals that are nothing more than a pipe dream. Financial-giant GE got itself out of the car leasing business because it couldn't make any money doing it. Mostly because of the crazy residuals they'd use to be competitive.

Like the man from Larchmont, I'm a geezer :D but I paid cash for my cars even when I was a young pup. For one thing, writing a large check makes this painful enough that it keeps me from wasting huge amounts of money on something as dumb as a car. IMO the only rational circumstance to lease a car is if you have a business of some sort and are devoting the cash to more productive investments.
 

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larchmont said:
This is my favorite example. Granted, I left out a lot of the things from the post, including some GOOD reasons for leasing. But I don't think this is one of them.

People say this all the time, that leasing allows you to deduct it from your taxes. Even some accountants say it. But I'm pretty sure it's complete baloney. I don't mean that you can't deduct it, just that IT'S ABSOLUTELY NO DIFFERENT THAN IF YOU BUY. Either way, you can deduct, as long as you meet the IRS's business criteria; the criteria are no different either way. And it's not like you can deduct a higher amount if you lease than if you buy. There's a formula for the maximum amount per year that you can deduct, and with cars like the TSX, you usually run into that limit, either way. If anything, you can deduct a little more if you buy.

I've mentioned this on various forums and invited people to indicate any basis for the belief that there's any tax advantage to leasing. Nobody has yet, other than vague things like "the dealer said so" or "everybody knows it's true" or "all I know is my accountant said so." BTW I understand that there's a loophole that allows huge deductions for vehicles over 6000 pounds (which includes some SUV's) which might make it more advantageous to lease those vehicles than to buy them, or maybe it's the other way around -- I've never gotten that straight. But I'm just talking about "regular" cars, including the TSX.

I hope Insman and/or others will take a swing at this.

Larchmont, who is eagerly awaiting.
Okey Dokey...:)

My accountant tells me that if I lease it in my corporation's name, I get to deduct the whole payment as business expense, no matter how I use it within reason. If I buy a car, I only get depreciation (over 7 years), plus I can only deduct that percentage I actually use the car for business. IOW's if I drive 3,000 miles per month and only 1,500 were for business, i only get 50% of the depreciation on my business. This also requires keeping laborious records including start mileage, work mileage, and pleasure mileage each and every day.

I've been this route. I kept faithful records only to have my car expenses questioned by the IRS. I found out that no matter what records I had, I didn't get as much as I deducted. Plus, I had to keep the car a long period of time to get my full tax advantage.

I'll repeat this, though. I don't advocate leasing for the Average Joe. At the end of your lease, you have no down payment except cash. A $350 payment on your leased car soon becomes a $450 payment on your new leased car, if you have no cash saved up. Pretty soon, you'll be in $1,000 territory.
 

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insman said:
I'll repeat this, though. I don't advocate leasing for the Average Joe. At the end of your lease, you have no down payment except cash. A $350 payment on your leased car soon becomes a $450 payment on your new leased car, if you have no cash saved up. Pretty soon, you'll be in $1,000 territory.
Another thought.....

I don't advocate doing most of the financial things that Joe and Jane Sixpack do!

BUT IF you can beat the imputed rate of interest on a lease with your investments OR if the lease residual is high enough that the manufacturer's finance department appears to be on drugs, THEN it makes sense to lease a car. An example might be a SAAB which depreciates so badly that they'd never sell any SAABs if they used realistic lease residuals. So if GM leasing wants to take their shareholder's money and give it to me, that's OK. :)

All of this assumes that you have the cash to buy the car. If you can't afford something you shouldn't buy it! This is Basic Personal Fiscal Prudence 101. (It's OK to trade pieces of paper for things if you're the gov't. You can print money if you are. I can't.)

Where I said: "IMO the only rational circumstance to lease a car is if you have a business of some sort and are devoting the cash to more productive investments" I meant the sidelines that many of us have as well as full-time business interests. If you have an investment portfolio, you have a business whether you want one or not.
 

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Discussion Starter #17
its true

i have to say cars are the worst investment you can make, but everyone in todays world needs a car, 4 or 5 decades ago the car was something that people wanted, it was considered a luxury item, today anyone with bad credit, no money to put down on a car can get one, its really sad but hey, people still go out and buy cars because this is america,


something i always hear, you buy what appreciates and lease what depreciates.....

i guess everyone hear believes in financing which i do myself since i financed my first car, but i was just looking into leasing to see the difference between the 2......my friend leased a car in the mid 90's, after he gave it in that was the last time he leased, since then he has bought his last 2 cars......
 

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bob shiftright said:
.....IMO the only rational circumstance to lease a car is if you have a business of some sort and are devoting the cash to more productive investments.
I agree that THAT'S a good financial rationale for leasing.
But you could argue (or at least I would) that it would be still better to BUY the car and finance as much as you can.
 

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insman said:
Okey Dokey...:)

My accountant tells me that if I lease it in my corporation's name, I get to deduct the whole payment as business expense, no matter how I use it within reason. If I buy a car, I only get depreciation (over 7 years), plus I can only deduct that percentage I actually use the car for business. IOW's if I drive 3,000 miles per month and only 1,500 were for business, i only get 50% of the depreciation on my business. This also requires keeping laborious records including start mileage, work mileage, and pleasure mileage each and every day.

I've been this route. I kept faithful records only to have my car expenses questioned by the IRS. I found out that no matter what records I had, I didn't get as much as I deducted. Plus, I had to keep the car a long period of time to get my full tax advantage.....
Great answer, and I guess that's the rationale.
But I'm pretty sure it's not true.
At least on paper.

You know, things like this are tricky. Sometimes there might be a certain set of facts on paper, but the way it actually works is different. I'm pretty sure (pretty sure but don't take it to the bank) that ON PAPER, what I'm saying is true -- you CAN'T automatically or even almost automatically deduct the full lease amount, you DO still have to keep all the usual records, you can only deduct the percentage that you can defend as business use, etc. HOWEVER, I suppose it's possible that the IRS is much less likely to drill you on this if you lease; I'm just making this up, as a way of understanding how what you say has become such common wisdom despite (I'm pretty sure) not being technically correct -- just trying to imagine what could justify it, and maybe that's it.
 
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