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).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.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
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.The best option is to lease a brand new one.
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.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.
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.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.
i currently moved to nebraska so i definitely won't be driving that much hahaLots 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.
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 budgetHard 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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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?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.
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.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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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.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.
Whether it’s leased or financed, the Bank normally expects you to carry full (comprehensive) insurance. But you should anyway.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
Very interesting! What is your sales tax rate in TX?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)
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.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.
Ugh, that's unfortunate. Thanks for pointing that out and I will never lease in TX (unless I become a realtor)...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!!!