@BenzsandBowTies 15 years ago, I factory-ordered a Subaru Forester to get a wagon with a sunroof and a 5 speed manual trans. I should have ordered two. It looks like I'll buy a new toy and keep this as my daily driver.
I still have my 2006 Tundra that I bought new with cash in 2006. It has 150K miles and still looks great. Buy a good solid car, take care of it and keep it. Keep your money in the market, not the garage!
I see your point , and my counter is that the dealer add ons and doc fees exacerbate the depreciation because so many people put 0 down , as well as rolling in the taxes to the loan…. It’s a heart decision, not a head decision.
Don’t know much about RUclips yet and what works / what doesn’t but I remember in the early days of my other social medias it was much easier to engage with everyone!
Absolutely! Contrary to popular belief, section 179 can be applied to a lease as well as a purchase. Of course for the particulars you’ll want to consult with your accountant!
@ to provide some context, I have tried learning as much as possible about this portion of the tax code and whether purchasing or leasing is the best option. I started about a year ago. Over that same period of time, I was researching vehicles and ended up getting an AMG GLS 63 that I custom ordered. I live in Pittsburgh and your dealership consistently was in my search results because your inventory was always BEYOND impressive. Absolutely love the Instagram channel as well. My wife has a lease and it is up next October. In the meantime, I will continue to follow your social media and keep an eye on inventory. She absolutely loves the G class series, but it is very difficult, if not impossible to find any inventory. Thank you for your time and expertise and production of this wonderful content 🙏❤️🚙
That particular car is sold, but that’s a popular option with G-Wagon buyers! Lease it, write it off, buy it out at the end and have an instant massive positive equity situation!
Exactly.... Luxury cars are not the same as Hondas/Toyotas etc. They will depreciate, their repairs outside of warranty will be higher. Is it fiscally more responsible to buy a Toyota and drive it into the ground? Sure but Luxury cars aren't considered a fiscally responsible decision (much like any luxury item!). With that said you do the math and even if you were to pick up a 3 year old Audi/BMW/Mercedes with 40-50% depreciation from new, after the tire changes, brakes, etc (basic upkeep) plus further depreciation as you rack up the miles. You might have saved about $3-6,000 vs someone that did a second 3 year lease. Believe it or not there are people that would rather drive new cars every 3 years and pay an extra $6,000 spread over 6 years ($83 a month). Again though theses numbers as you stated are for luxury cars.
Clearly you do understand an auto lease. An auto lease really is not different than a purchase.. With both a lease and a purchase you pay a negotiated price. With both a lease and a purchase the vehicle loses value. At the end of the lease period, in most cases, the amount you pay during the lease is less than the loss in value you would experience with a purchase. That is why a monthly lease payment is usually less than the monthly payment on a purchase. With a lease you have the option of purchasing the vehicle at the end of the lease. The amount you pay is the residual value. During the lease you paid the difference between the negotiated price and the residual value. So, whether you purchase or lease and buy at the end of the lease you pay the negotiated price. The one major cost difference between a purchase and a lease is the acquisition fee on a lease, often several hundred dollars. You do not pay this on a purchase. For many, this fee is justified by the ability to return the vehicle at the end of the lease.
I'm a buy-it-and-keep-it customer, but this is a wise pro-lease argument for the right customer, with the right needs and the right car.
For people who keep their cars for 6+ years, absolutely buy. But for many, leasing is the best option!
@BenzsandBowTies 15 years ago, I factory-ordered a Subaru Forester to get a wagon with a sunroof and a 5 speed manual trans. I should have ordered two. It looks like I'll buy a new toy and keep this as my daily driver.
I agree. and I don't see it as debt, more like condo fees or property taxes.
unless it's one of the luxury SUVs that drives a million kms
@@PalisUK interesting analogy, I like it!
I still have my 2006 Tundra that I bought new with cash in 2006. It has 150K miles and still looks great. Buy a good solid car, take care of it and keep it. Keep your money in the market, not the garage!
That's awesome! You are definitely the exception, not the rule! If you keep your cars this long, you are absolutely better off buying them.
I see your point , and my counter is that the dealer add ons and doc fees exacerbate the depreciation because so many people put 0 down , as well as rolling in the taxes to the loan….
It’s a heart decision, not a head decision.
Make sure that you are not working with a dealer that has add ons that you did not ask for!
Good info commenting to help the algorithm.
Don’t know much about RUclips yet and what works / what doesn’t but I remember in the early days of my other social medias it was much easier to engage with everyone!
Does this advice also apply to a business owner who wants to take advantage of section 179 tax advantages?
Absolutely! Contrary to popular belief, section 179 can be applied to a lease as well as a purchase. Of course for the particulars you’ll want to consult with your accountant!
@ to provide some context, I have tried learning as much as possible about this portion of the tax code and whether purchasing or leasing is the best option. I started about a year ago. Over that same period of time, I was researching vehicles and ended up getting an AMG GLS 63 that I custom ordered. I live in Pittsburgh and your dealership consistently was in my search results because your inventory was always BEYOND impressive. Absolutely love the Instagram channel as well. My wife has a lease and it is up next October. In the meantime, I will continue to follow your social media and keep an eye on inventory. She absolutely loves the G class series, but it is very difficult, if not impossible to find any inventory.
Thank you for your time and expertise and production of this wonderful content 🙏❤️🚙
That AMG G wagon 63 I’d lease to buy. Can you show the sticker on that G wagon 63 you got inventory sir ?
That particular car is sold, but that’s a popular option with G-Wagon buyers! Lease it, write it off, buy it out at the end and have an instant massive positive equity situation!
I wouldn't even lease a Mercedes nowadays. Had to learn that the hard way on a 2021 w223. Trust me get a panamera, Porsche still cares.
What do you mean by you "learned the hard way?" What happened on your Mercedes lease?
Exactly.... Luxury cars are not the same as Hondas/Toyotas etc. They will depreciate, their repairs outside of warranty will be higher. Is it fiscally more responsible to buy a Toyota and drive it into the ground? Sure but Luxury cars aren't considered a fiscally responsible decision (much like any luxury item!). With that said you do the math and even if you were to pick up a 3 year old Audi/BMW/Mercedes with 40-50% depreciation from new, after the tire changes, brakes, etc (basic upkeep) plus further depreciation as you rack up the miles. You might have saved about $3-6,000 vs someone that did a second 3 year lease. Believe it or not there are people that would rather drive new cars every 3 years and pay an extra $6,000 spread over 6 years ($83 a month). Again though theses numbers as you stated are for luxury cars.
So Honda and Toyota vehicles do not "depreciate?"
Terrible advice. Pay thousands, turn the car in and take a Uber home.
Clearly you do understand an auto lease. An auto lease really is not different than a purchase..
With both a lease and a purchase you pay a negotiated price.
With both a lease and a purchase the vehicle loses value. At the end of the lease period, in most cases, the amount you pay during the lease is less than the loss in value you would experience with a purchase. That is why a monthly lease payment is usually less than the monthly payment on a purchase.
With a lease you have the option of purchasing the vehicle at the end of the lease. The amount you pay is the residual value. During the lease you paid the difference between the negotiated price and the residual value. So, whether you purchase or lease and buy at the end of the lease you pay the negotiated price.
The one major cost difference between a purchase and a lease is the acquisition fee on a lease, often several hundred dollars. You do not pay this on a purchase. For many, this fee is justified by the ability to return the vehicle at the end of the lease.