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
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.
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
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?
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
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.
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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