sparkhill

I was on a 24 month/12K annual mileage lease set to end June, 2008. My mileage is 13K. There is not any other car I want that I could get before lease end and the residual was $51,464. I had two more payments, so I had to add in and additional $2,071 (two payments less refunded rent charge).

It was far better to buy from VW Credit rather than going through the dealer. The car is still considered "new" since it is a 2007 and I found 5.39% APR financing so I took pulled the trigger.

Bob W.

sounds like a fair deal....you could probably flip it and make a little $$.

sparkhill

I'm just hoping to "break-even" (less depreciation) whenever I sell it

sparkhill

I ran the final numbers and it works out I "saved" $4300 ($180/mo) by leasing the car (70% business usage, 35% marginal tax rate). Had this not be a legitimate business expense, the lease would have cost $4200 more than a conventional purchase (6%, 5yr). If I can sell the car for more than I have invested, the lease will have been even more favorable.

Bottom Line: The lease was the way to go since I could write the car off. Purchase would be better if I could not have written the car off.

CanuckRS4

Well it really depends on how much you can write down the value of the vehicle. Lease vs. purchase is pretty close because you can also "write-off" part of the value of the vehicle with a finance or even straight out purchase. Running the numbers i found that a purchase/finance was the same if not a little better. Depending of course on lease vs finance interest rates.

sparkhill

I am only allowed to write-off a lease (not a purchase) through my business. If I wrote-off the depreciation of a purchase on my personal return, then it would be closer to a wash. So I guess the "savings" may have been overstated. In the end, leasing or buying ends up being pretty close and just depends on your individual situation. It probably boils down to the fact there are a lot smarter people than me working all of this stuff out at the finance companies.

Bob W.

varies by state of course, but in TX we get hit pretty hard with property tax.

I've talked to 3 different CPAs about this, and all 3 advised me to lease any vehicle that's for business use.

MARKNMTT

RS6 held value until first round of 3yr leases unloaded on the market. Car dropping 10K in value over night and another 10K in the next 6 months. My purchase payment is way cheaper than what a 3yr lease number would have been but I would be turning in the car soon with no lost value to me. The extra lease payment would have been way less than the 10K I am upside down on the car now. Long story short financially without business tax breaks I would have been WAAAAAAAyyyyyyy better off leasing. Good thing i love the car.

sparkhill

I'm not sure there are as many leased RS4's as the numbers were far less favorable. I do anticipate significant additional depreciation though. Guess we will see.

MARKNMTT

Good man. Well you have been smart so far. Good thing is the cars are worth being stuck with