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I have never purchased a land rover product before and wanted to know what the best option is. should i lease a new one or just purchase a used one. Would you recommend getting a used one with factory warranty or just leasing a brand new one
 

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Lots of moving variables. I haven't leased before but I think the two major reasons to lease a RR would be:
-If you are eligible for a business tax deduction
-If you do not drive that many miles

Getting a CPO with an extended factory warranty is a pretty good way to go if you are not choosy with options or want a white or black one.
 

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I have never purchased a land rover product before and wanted to know what the best option is. should i lease a new one or just purchase a used one. Would you recommend getting a used one with factory warranty or just leasing a brand new one
Hard question to answer without more information. 15k max a year is good for me so I lease my dailie (g63 and rrs), and buy the toys and workhorses (siennas and vans).




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Agree that there are a number of variables that drive different decisions. I have bought and leased 4 different RRS over the years depending on my circumstances at the time and the financing offers available.

Assuming that you cannot get the business tax deduction, then it boils down to potential usage, how long you plan to keep the car and financing. In some cases, you are able to get better rates through a purchase than a lease, but you have to get the money factor and do the math to compare. Lately, JLR has been offering 2-3% financing on terms up to 72 months versus lease equivalents of 5-6%+ for 39 months. RRS hold their value, especially in the early years, so you should be able to get a good residual value that holds regardless of lease or buy. I have been buying them lately because the financing terms have been significantly better due to cheap money being available as compared to leasing. That said, your circumstances may be different.
 

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I have never purchased a land rover product before and wanted to know what the best option is. should i lease a new one or just purchase a used one. Would you recommend getting a used one with factory warranty or just leasing a brand new one
The best option is to lease a brand new one.
 

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The best option is to lease a brand new one.
Agree to this IF you don't plan to keep the car beyond the term of the lease. Leasing is very convenient and good if you only want to use the car for the (short) lease term. It's not as good of you want to keep the car long term because you'll probably pay more leasing and then buying out the car then just getting a traditional auto loan.

Leasing has less money up front and lets people into nicer cars for the same money. But it's strictly a rental, there's no equity. But since cars are a depreciating asset equity is not really the point. With leasing you're strictly paying for the use of the car.

I like to think of it just as a long-term car rental. The terms (monthly costs) are agreed upon in advance and you know exactly what it will cost at the end of the term when you either want to walk away or purchase the vehicle. Expensive vehicles can be difficult to sell used on your own so I think leasing is easier and less risky than purchasing when it comes time to sell or trade-in. Leasing also gives you the extra safety net of walking away, e.g. If you get into a big accident, insurance pays for the repairs, but you don't want to keep the car after such a major rebuild.

What's not good with leasing is if you want, or need, to get out of the lease early because you'll probably be underwater, i.e. the car is worth less than what you owe. So that's the flip side of the trade-off vs. purchasing/traditional auto loan.

We've leased almost all of our recent vehicles and we like keeping them for a few years. I think leasing is good for us because of this frequency, even though we can't take advantage of any tax benefits (no business use). The few high end cars we've sold or traded in were not easy and could've gone much worse for us.

If you're in a position to flip into a new car in a few years then definitely check out leasing. Do ask what they money factor is so you know if the finance the are very poor (you can lookup online how to convert MF into something like an interest rate). Don't be swayed by just a low monthly payment. Don't pay extra money down (cap cost reduction) because it's simply prepayment against each monthly payment and doesn't reduce your finger overhead. If you watch for end of season deals then you can take advantage of very good lease offers when the manufacturer is trying to offload slow selling models just before the new year inventory arrives.


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I considered leasing also, but I cant write it off as a business expense. My friend who went to the dealership with me tried to talk me into leasing, but I just cant do it. I feel like I dont really own the car, like it’s not really mine. And what if I got a small tear the seats, or a scratch on the bumper? Maybe I could live with it if it was my car, but I’d have to repair it with a lease.

Once I saw someone with a beatuiful RRS. I told him “beautiful RRS” and he replied, “thanks, but it’s not mine, it’s leased.”

Anyway, if I could write it off my taxes then I would lease. The advantages of leasing are that it’s cheaper and you dont need the extended warranty. If you get into a major accident, it will hurt the value of the car, which doesnt matter if you lease, but can impact resale value if you own. But I still cant get over that it’s not really my car. Now, an electric car I would definitely lease, because when the lease is up, with advancements in technology, the battery will likely be much improved.
 

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Now, an electric car I would definitely lease, because when the lease is up, with advancements in technology, the battery will likely be much improved.
Absolutely agree. Electric technology is still in its infancy so long-term value is questionable and higher risk vs. conventional cars. Who knows what battery issues/costs there may be in the long-term and how much more attractive the latest electric car technology will be in the future? Therefore the advantages of leasing are more attractive for an electric car right now.

I feel like I dont really own the car, like it’s not really mine. And what if I got a small tear the seats, or a scratch on the bumper? Maybe I could live with it if it was my car, but I’d have to repair it with a lease.
Yes, leasing is the same as just saying "It's just a rental". I often use that exact phrase. The thing you need to answer for yourself is whether and why you want to "own" the car or just pay for the use of a nice car each month.

As for the tear or scratch, they do not expect the car to be in perfect condition when you return it after say 3 years, but they will for excessive wear. In my experience small scratches like less than a few inches are ignored. One of my BMW returns long ago used a circle that they covered any scratches, e.g., ones more than 7 inches were $500 and ones more than 3 inches were a bit less (I can't exactly remember but the point is scratches had to be long to really matter). If you lease another car of the same model, they often forgive even more and let you out of the lease early. Any small dents you can get fixed by those inexpensive "paintless dent" repair. In the worst case, you do an insurance claim and your comprehensive deductible should be cheap for non-collision body repairs. Also note that leasing is expensive if you exceed the agreed-upon mileage limits by a large amount so not good for people who regularly drive their cars long distances.

But remember, you can always purchase the car at the end of the lease for the "residual" and then none of those dents/tears/etc. matter. You now own the car and are in the same place where you would be had you purchased it to begin with. IMO leasing gives you more options but it is usually more expensive, not less, compared to traditional financing at the initial purchase time. Yes the monthly payments are less but your equity stake in ownership is less (even with leasing you're still incrementally "purchasing" more value of the car each month toward the purchase price vs. agreed-upon residual). So your total finance overhead is more if you buy out the lease for the residual vs. had just purchased the car in the first place. That is the trade-off you make when initially decide to lease vs. buy.
 

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Discussion Starter #9
Lots of moving variables. I haven't leased before but I think the two major reasons to lease a RR would be:
-If you are eligible for a business tax deduction
-If you do not drive that many miles

Getting a CPO with an extended factory warranty is a pretty good way to go if you are not choosy with options or want a white or black one.
i currently moved to nebraska so i definitely won't be driving that much haha
Can i PM you about the Business tax stuff? CPO with an extended factory might be the way to go but i want to be able to sell it later down the line and maybe get another newer range.
 

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Discussion Starter #10
Hard question to answer without more information. 15k max a year is good for me so I lease my dailie (g63 and rrs), and buy the toys and workhorses (siennas and vans).
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15K miles a year is way too much for me. i was thinking somewhere between 7,500 - 10,000. Plus i'm looking to stay within a certain price range monthly wise. Very tough spot, i don't know how the whole buying a car process works in the terms of depreciation. very familiar with leasing but lease requires (i think) full coverage insurance and so that's a bit over my budget
 

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Discussion Starter #11
Agree that there are a number of variables that drive different decisions. I have bought and leased 4 different RRS over the years depending on my circumstances at the time and the financing offers available.

Assuming that you cannot get the business tax deduction, then it boils down to potential usage, how long you plan to keep the car and financing. In some cases, you are able to get better rates through a purchase than a lease, but you have to get the money factor and do the math to compare. Lately, JLR has been offering 2-3% financing on terms up to 72 months versus lease equivalents of 5-6%+ for 39 months. RRS hold their value, especially in the early years, so you should be able to get a good residual value that holds regardless of lease or buy. I have been buying them lately because the financing terms have been significantly better due to cheap money being available as compared to leasing. That said, your circumstances may be different.
Makes sense mike. I get bored of things rather quickly and i'm going into pharmacy school so i was thinking of keeping the vehicle till i am done with school but i worry that buying a used RRS will result in a lot of problems that i am not ready for or interesting in worrying about during my school years. Leasing a new one sounds very enticing but the cost of insurance for me will be a bit way too and will go over my bought. Can i PM you rather the Business tax deduction?
 

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Discussion Starter #12
The best option is to lease a brand new one.
I'm considering that, but leasing seems to go over my budget when it comes to insurance. I believe full coverage is required for a leased vehicle i'm not too sure but you can correct me on that
 

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Agree to this IF you don't plan to keep the car beyond the term of the lease. Leasing is very convenient and good if you only want to use the car for the (short) lease term. It's not as good of you want to keep the car long term because you'll probably pay more leasing and then buying out the car then just getting a traditional auto loan.

Leasing has less money up front and lets people into nicer cars for the same money. But it's strictly a rental, there's no equity. But since cars are a depreciating asset equity is not really the point. With leasing you're strictly paying for the use of the car.

I like to think of it just as a long-term car rental. The terms (monthly costs) are agreed upon in advance and you know exactly what it will cost at the end of the term when you either want to walk away or purchase the vehicle. Expensive vehicles can be difficult to sell used on your own so I think leasing is easier and less risky than purchasing when it comes time to sell or trade-in. Leasing also gives you the extra safety net of walking away, e.g. If you get into a big accident, insurance pays for the repairs, but you don't want to keep the car after such a major rebuild.

What's not good with leasing is if you want, or need, to get out of the lease early because you'll probably be underwater, i.e. the car is worth less than what you owe. So that's the flip side of the trade-off vs. purchasing/traditional auto loan.

We've leased almost all of our recent vehicles and we like keeping them for a few years. I think leasing is good for us because of this frequency, even though we can't take advantage of any tax benefits (no business use). The few high end cars we've sold or traded in were not easy and could've gone much worse for us.

If you're in a position to flip into a new car in a few years then definitely check out leasing. Do ask what they money factor is so you know if the finance the are very poor (you can lookup online how to convert MF into something like an interest rate). Don't be swayed by just a low monthly payment. Don't pay extra money down (cap cost reduction) because it's simply prepayment against each monthly payment and doesn't reduce your finger overhead. If you watch for end of season deals then you can take advantage of very good lease offers when the manufacturer is trying to offload slow selling models just before the new year inventory arrives.


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Thanks Mikey. i really appreciate the detailed message! Can i PM you about the Tax benefits? cause i seem to have a tough time understanding it. i do want to keep the vehicle for a while like 4 years or so and then maybe change to something else. The problem i have with leasing is that i think when it comes to insurance, the vehicle has to have full coverage which is way too expensive for someone my age.
 

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The problem i have with leasing is that i think when it comes to insurance, the vehicle has to have full coverage which is way too expensive for someone my age.
Sorry, our leased vehicles have always only been for personal use so I've never taken advantage of nor really know about the tax details. My limited understanding is there has to be some business-use component, e.g., you're a realtor or own your own business, so it doesn't sound like your situation qualifies for any leasing tax deduction. Furthermore, tax deductions work against income so if you're in school full-time then that limits their usefulness for your situation.

Frankly, I'm sorry to say it but if you're worried right now about the insurance costs then I think it's too early for you to lease an RR. Leasing is one of the car manufacturer ways of getting people into cars that they really cannot afford, via low monthly payments that seem cheap and easy -- You do not want to fall into that trap. Take advantage of the inexpensive lease rate deals offered for less inexpensive cars. You see them on TV, especially now when they want to move the 2018s when the 2019s are here or coming very soon so they offer very good money rates (i.e., financing terms or interest rate) and credits. The cheaper monthly payments will allow you to include the cost of full insurance, which is for everyone's protection and you should always have. Live within your means while you're still in pharmacy school (congrats, by the way) and then enjoy the benefits of these luxury cars once you graduate, get a nice-paying job, and are old enough that the auto insurance rates are not excessive.

You might also get into an inexpensive CPO used luxury car right now, if the financing price is right and you can afford the insurance payments because it's an older car. A lot of the insurance cost is for comprehensive repairs of the car's value, which drops almost 40%-50% in the first few years. So I hope even your insurance rates for a used luxury car will be much less than for a brand new car -- Check with your insurance agent, they can tell you what your rate will be for a particular make/model/year. And because you don't want any surprise maintenance costs, I'd recommend a used Lexus or one of the other maintenance-free brands. I've had a couple Lexus cars in the past and they're quite nice, even though a different kind of ride & style and maybe not as exciting for car aficionados.
 

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One important thing to remember, is that it doesn’t matter whether we Lease or Finance, the Bank owns the Car.

As for tax advantages, here in CA, when we Finance a Car, we pay all the Tax upfront, which is almost 10%, if you combine state and local. On a lease, we “ only” pay tax on the monthly payments. So even if we can’t write it off, there is still an advantage.

I don’t want to come across like I’m encouraging people to Lease, I’m not, as pointed out above, there are a lot of variables, it depends on People’s individual circumstances.
 

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I'm considering that, but leasing seems to go over my budget when it comes to insurance. I believe full coverage is required for a leased vehicle i'm not too sure but you can correct me on that
Whether it’s leased or financed, the Bank normally expects you to carry full (comprehensive) insurance. But you should anyway.
 

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I am floored someone would think of not having "full" insurance coverage on a financed car. First of all the bank will almost definitely make you carry comprehensive/collision not just liability. Also, if you owe $50k and the car is stolen or you get in a accident that is not your fault, without full/collision/comp coverage you would still owe the bank all the payments. In fact if somehow you get by with a unwise/cheap coverage scheme and something does happen, the bank (now without either full collateral if damaged/un-driveable, or ANY collateral if stolen/totaled), if at all legally entitled to, will call the ENTIRE outstanding balance or put you into default! Even if that doesn't happen, you would be stuck making all the payments and no longer having a car!

Now, even if you have full coverage, you STILL want to ensure you have what is called GAP coverage. If you buy a new car for $80k and total it 6 months later, the value of it is probably $65k (its used and has maybe 10k miles, may be a model year older too). That is what you will be paid, but if paying maybe $1k per month in principal you will still owe $9k more than the insurance company will pay your bank. GAP coverage will cover this difference.

Finally, in TX, you pay sales tax on the full price of the car when leasing, up front. This is because the DEALER takes ownership from the manufacturer and at any change of ownership due to a sale (not inheritance/gift), taxes are due. Maybe you can roll it into the monthly payments but that will involve interest. Then, if you want to buy the car at lease-end, you pay sales tax AGAIN on the residual!!! So, anyone who cannot write off a lease in TX and gets one is a moron, and even if you can write it off, well that doesn't make it free! "It's a write off" as a (often sole) defense for spending money doesn't usually come out of a smart person's mouth! (I am a CFP® by the way)

Now, taking OVER a lease is TX CAN be a good deal, since there is no change of ownership. Just did that to get a 2016 Corolla for our au pair, with 17 months left and only 5/36k miles. No taxes due, just minimal registration costs and a nominal fee to Toyota. it was sort of a PITA though... more because of Toyota's process.
 

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Yes I only know superficial things about the business tax deduction part, but you have to be self-employed and use the vehicle for primary business reasons I believe. Being in pharmacy school or being a pharmacist won't count. Being a realtor or something along those lines would. Since the RR products have a higher gross motor vehicle weight, you can deduct more than say a sedan.

If you can make it work, a CPO model with low mileage would make the most financial sense, but it would take special circumstances for one to buy this vehicle especially brand new while still in professional school. I remember those were pretty lean years, and even with admittedly strong family support, that was basically to help me avoid student loans and debt.

Regardless, sounds like you have a bright future and a Range will be in your driveway sooner or later. :thumb:
 

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Finally, in TX, you pay sales tax on the full price of the car when leasing, up front. This is because the DEALER takes ownership from the manufacturer and at any change of ownership due to a sale (not inheritance/gift), taxes are due. Maybe you can roll it into the monthly payments but that will involve interest. Then, if you want to buy the car at lease-end, you pay sales tax AGAIN on the residual!!! So, anyone who cannot write off a lease in TX and gets one is a moron, and even if you can write it off, well that doesn't make it free! "It's a write off" as a (often sole) defense for spending money doesn't usually come out of a smart person's mouth! (I am a CFP® by the way)

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Very interesting! What is your sales tax rate in TX?
 

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Now, even if you have full coverage, you STILL want to ensure you have what is called GAP coverage. If you buy a new car for $80k and total it 6 months later, the value of it is probably $65k (its used and has maybe 10k miles, may be a model year older too). That is what you will be paid, but if paying maybe $1k per month in principal you will still owe $9k more than the insurance company will pay your bank. GAP coverage will cover this difference.
Very good advice. Other manufacturer finance companies automatically include gap insurance in their lease agreements, e.g., Audi and Mercedes, but it seems that Land Rover Financial does not do the same. it's a fairly small amount but you do need to ask for it explicitly from your insurance agent.

Finally, in TX, you pay sales tax on the full price of the car when leasing, up front ... Then, if you want to buy the car at lease-end, you pay sales tax AGAIN on the residual!!!
Ugh, that's unfortunate. Thanks for pointing that out and I will never lease in TX (unless I become a realtor)... :)
 
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