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Jay Leno says it's better to buy than lease

10429 Views 53 Replies 22 Participants Last post by  Taser54
Jay Leno says it's better to buy than lease.

Article at the link
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One thing we can agree on is that Jay Leno is not debt free because he always buys all the cars he puts in his garage! So funny.

All you can really say about buying versus leasing is: buying is always better unless it's not.
I don't see how you can say Jay Leno is not debt free when he is quoted in the article self proclaiming that he bought all his cars and owns all the buildings that he store's them in?

But what Jay says is music to my ears. Too many people are leasing to get more than they can afford. Yes Jay is filthy rich, he can drive whatever he wants. I'm not as filthy rich, but I too can drive whatever I want... as long as I keep it to less than a handful of cars. And I don't plan on ever getting to two handfuls.
If you look at the real numbers, leasing a vehicle for your business to have a 'write off' isn't better either. If you work for a company who actually reimburses you, that works, but is the rare exception.
As an owner of a small business I reached out to a tax advisor to get the real skinny, and just like Joe says, it's a writeoff that is an employee perk. If your business is very profitBle and you want to retain employees with this perk, then go for it an lease as it makes everything an expense and you don't have to mess with capital depreciation, but there's no doubt I'm better off owning my car and reimbursing myself for mileage than leasing a car for business.

Some tax people also mistakenly think you need the mortgage interest writeoff, but assuming you are in the 25% tax bracket why would you pay the bank 3% or so in interest to avoid paying Uncle Sam 25% of 3% (or 0.75%)? It's better to not have a mortgage at all and owe Uncle Sam that 0.75% YMMV
If buying is better than leasing 99% of the time, I'm that other 1%! Flipping a 3 month old lease for $4,700 profit was only possible via leasing! :p

And those Spark EV leases that could be had earlier this year for essentially free after the Cali EV rebate also fall into that 1%. :)
People who know the numbers in and out can come out MUCH further ahead leasing versus buying. Of course, most people don't have the skills/knowledge to do that.
And as you've posted, was only possible once. Since then Beepi changed their numbers where you couldn't flip again, and now they are no longer operating as Beepi

Similarly, I was only able to buy my $44k MSRP gen1 volt new at $21k, once. Since then GM hasn't discounted the MSRP by $5k (yet) and my state got rid of their wonderful 10% base MSRP EV rebate. The moons only aligned for me once, from here on out, I doubt I will ever be able to repeat it again. At the buy, I could have traded the car in for more equity (as soon as the rebates arrived), but then I'd be in a position where I had to buy another car and pay too much for it. And if I didn't time it right, I would have been royally pissed if I was one of the EV owners who submitted my state rebate form and was told that the program was suspended and I would get zero.

Flipping cars is usually never a good thing as most new vehicles lose $5-10k as soon as you drive it off the sales lot. Bro got lucky once, just as I got lucky once.
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My BOLT, I will be purchasing, however. :)
Whoa, the cubs win the World Series, trump wins the election, and now the master at early lease terminations for a profit is buying? Why the sudden 180 degree turnaround to purchase rather than lease?
Pretty much because I literally can't lease a Bolt because GMF won't allow it yet. Bolt flipping is not out of the question later next year though. ;)
I've purchased 4 cars between me and my wife over 22 years of marriage I'll bet you've gone through more than 4 cars in the last 2 or 3 years. We are complete polar opposites.
Pretty much because I literally can't lease a Bolt because GMF won't allow it yet. Bolt flipping is not out of the question later next year though. ;)
Don't feel bad that you can't lease one. You can't buy one yet either, unless you go to CA or OR to get one.
Right, you got your Bolt shipped to your from CA. Meanwhile if it needs service, good luck finding a dealership with the right tools and service manuals. Although I was a lurker when the first Volts started to arrive, I waiting until the gremlins were worked out of the early models and when the prices dropped. I'll never be first on the block with anything (same goes for an iPhone, I didn't pile in at the initial $599 frenzy, but did at $399). Buy like a Ferengi, and don't ever pay anything near full price.
In the computer biz of many years, actually decades, ago, IBM used to only lease their mainframe systems. You couldn't buy one. They made a huge amount of money from customers that kept making the lease payments on their older systems long after they should have upgraded.

I can see the day where maybe someone like Apple would supple an EV as a service, similar to the way to continue to pay for cable or satellite service month in and month out. I think the only company that might force me to lease would be Apple.

And if you look at IBM today, they sold their PC business to Lenovo, then they sold their server business to Lenovo while Google sold their much aligned Motorola Mobility business to Lenovo. Anybody worried about the Chinese taking over the world?
The counter argument is both leasing and buyer new is financial WRONG, the best financial deal is to buy USED...
Except in the rare instance where you are able to buy a new car for the price (or less) of a used one, as in my case with a $33K MSRP new 2004 CTS for $23K and a $44k new 2013 volt for $21K. Sometimes you just have to wait for the moons to align then jump at a bargain.
Same can be said with leasing; if it's $25k to buy or $0 down & $100/mo to lease...
Seriously, has anybody found a new volt at $0 and $100 per month? I think the lowest I've seen on this forum is something like $149 with something down on a gen1 as gen2s were rolling in. I don't want a Kia or a Hyundai.
So far for Chevy they offer their cheapest rates of the last year before the generation change; if you qualified for the right incentives you can have a Cruze for $50/mo (last year) and a $26,XXX Equinox for $100/mo (this year)...Who knows if Volt which is niche model will offer a deal its last year of this generation or if there even be a third generation...
I asked specifically about the volt. Of course a Cruze would be less (as the spark and sonic, take a look at lease rates for a Mitsubishi Mirage). The equinox is an interesting one, I don't know how they can possibly make a profit with a $100/ month lease deal. They must use it to bring in folks to the show room, then try to upsell them with packages. I'm at a stage in my life where I won't be buying a really cheap car anyway. At the moment, it's either a Subaru Outback, a suburban, or a tesla model S. Maybe someone will come along to change this list, but that's Ok, I take 9-10 years or so to shop for my cars, so we'll see what's on the market in 2022 (i bought cars in 1994, 1998, 2005, and 2013.
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