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Did you lease or Purchase your A5/S5?

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Discussion Starter · #1 · (Edited)
Simple poll: Did you lease or purchase your A5/S5:

I bought this car as a daily driver and for long trips, lease wouldn't work out for me.

How about you?
 

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A lease really only makes sense if the car is used for business--then you can write off the lease payments as an expense when incurred. While many lease because it SEEMS more attractive (lower down payment), over time it will generally cost more than a purchase if you have reasonable credit as the leasing company is, in effect loaning you money, generally at an inflated rate. In a purchase, IRS determines the length of time you can write off (depreciate) the car (I'm not sure of the amortization schedule) and it is generally a longer period of time than the lease.
 

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I always get a three or four year lease on my cars,normally change them every three years.

Gave up finance years ago,i can afford a better quality of car on lease payments than straight finance.
 

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I drive 30 miles each way for commute which comes out to 14,400 in commuting ALONE (assuming i don't drive out for lunch) plus whatever I need for pleasure (estimate maybe 18k miles?). Also I eventually do heavy modifications to all of my cars. Leasing just didn't make sense.

-Ray
 

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Thought about a lease but had to buy it with a 3.99% rate. Got stuck with a Mercedez lease on my last car. I just became more bitter about it. Plus I have my wife, the CPA, pulling out her lap top doing amortization tables to see which is the least costly.
 

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I leased through my business. I had the lease built with 20k Mi/yr.
 

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I just feel when you lease:

1) you are paying someone to use their money for your fun

2) You are exempt from lemon laws ( US legal system )

3) Everyone I know that does either has miles left or they drove too many

4) I like to have control of what I want to do with the vehicle

Yup, I bought it!
 

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Discussion Starter · #10 ·
I can't keep a car stock for too long either... that would be another reason for me.
 

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I am currently leasing my car because I wanted to make lower payments, i.e. I wanted the car but I didn't have the finance means to get it unless I lease it... with my lease, I can buy the car anytime so I will most likely buy it in a year or so...
 

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I purchased mine, but with the companies money.

Whats very annoying is that my budget was £40k which would have allowed for a nice spec TDi or even an S5, at a push, but the BIK payments are just stupid on any car with a larger engine and a larger price tag and I'm too mean to pay extra tax. The car is fully expensed, including personal fuel, so even after the extra tax it still makes much more sense to run it as a company car rather than purchase myself.
 

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I purchased mine, but with the companies money.

Whats very annoying is that my budget was £40k which would have allowed for a nice spec TDi or even an S5, at a push, but the BIK payments are just stupid on any car with a larger engine and a larger price tag and I'm too mean to pay extra tax. The car is fully expensed, including personal fuel, so even after the extra tax it still makes much more sense to run it as a company car rather than purchase myself.
Same as me. We purchase all our company cars outright. I've gone for the TDi as I recently switched from having a salary to dividends so I no longer pay 40% tax:). This means that the BIK on my car comes down from £385 per month to £185 per month. Not including fuel benefit as we only reclaim business mileage (cough, cough!)
 

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Same as me. We purchase all our company cars outright. I've gone for the TDi as I recently switched from having a salary to dividends so I no longer pay 40% tax:). This means that the BIK on my car comes down from £385 per month to £185 per month. Not including fuel benefit as we only reclaim business mileage (cough, cough!)

Exactly what I do as well. My (cough, cough) business miles record is a fictional account of my travels :)
 

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Discussion Starter · #15 ·
I am currently leasing my car because I wanted to make lower payments, i.e. I wanted the car but I didn't have the finance means to get it unless I lease it... with my lease, I can buy the car anytime so I will most likely buy it in a year or so...

I'm assuming your car was available at one of the other dealerships? :D
 

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I wonder if the HMRC read these posts!
 

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I merely had a frog in my throat whilst I was typing.Why would HMRC be interested in that? :rolleyes:
 

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It appears the IRS has a close cousin in the UK-the HRMC. In the U.S., if you get audited, the IRS has been known to get out their magnifying glass (microscope?) to check the documentation on miles used for work vs pleasure. They are very specific about the use of a vehicle--commuting to work is not, generally, considered a business expense. If the company leases the vehicle for you, you probably have nothing to worry about. However, I have heard of cases where IRS will charge back to the driver of the car any mileage that is not deemed for business use and disallow the expense to the business. They consider this use as regular income. Is the HRMC that "nit-picky"?
 

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I just feel when you lease:

1) you are paying someone to use their money for your fun

2) You are exempt from lemon laws ( US legal system )

3) Everyone I know that does either has miles left or they drove too many

4) I like to have control of what I want to do with the vehicle

Yup, I bought it!

You are not exempt from lemon laws (at least in PA) I had a Benz E 500 that I leased which gave me nothing but headaches. I won a lemon law battle over that car. BTW I bought my S5. Driving 25K miles per year, my payments lease vs buy were only $8 different per month.
 

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It appears the IRS has a close cousin in the UK-the HRMC. In the U.S., if you get audited, the IRS has been known to get out their magnifying glass (microscope?) to check the documentation on miles used for work vs pleasure. They are very specific about the use of a vehicle--commuting to work is not, generally, considered a business expense. If the company leases the vehicle for you, you probably have nothing to worry about. However, I have heard of cases where IRS will charge back to the driver of the car any mileage that is not deemed for business use and disallow the expense to the business. They consider this use as regular income. Is the HRMC that "nit-picky"?
If you are the business owner there is a way around that for the most part. I am always "on call". As the first contact for the security system I have to be able to do stuff for work wherever I am. Therefore I am technically always working. Therefore all my miles count.

I do register 10% as personal miles to keep the auditors off my back. This 10% I put on extra income on the W-2. I only end up paying for the taxes on the income. Everything else the business pays for.
 
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