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Discussion Starter · #1 ·
No, I am not going to get a different car, in fact I can't wait to get the S5- I love it. What I am second guessing is my decision to lease. I called my dealer to find out what a monthly payment on a 5 year purchase would be, and it was only $10 more than the 42 month lease payment. Of course this is true only because I need to lease for 25K miles per year, but there is no changing that. What do you guys think? Pros, cons, what would you do?
 

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I've never been a fan of leasing. I keep my cars long term. I believe the residual value that holds will give you more $$ later on and you don't have mileage restrictions. Of course, you'd put a fair amount of down payment up front to minimize your monthly payments but in the end, I've been told that a financing option is a better bet. Especially if you're a homeowner and have equity - you could just do a 2nd and write off the interest. This is, of course, my personal opinion and I'd be interested in what everyone else has to say.
 

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change the job, make more $$$ and pay cash; so much that you will not think lease vs. loan or cash vs. anything but you won't even think what if .... This works the best. :) Unless you will make soooooo much more you, most likely, won't change your car choice either.
Cash or loan with the option to pau off any time - my choice. And if you buy for the business get a heavier rig which you can depreciate much faster.
 

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+1...buying is definitely better in the long run than leasing. The only reason that I am leasing is b/c this is for business (consultant) and leases are easier to write off. Also, I am only putting on 12K miles/year Otherwise, I would have financed the car with equity from my house.

FYI: Shop around for a good lease...I went to leasecompare.com got approved then took that deal to the dealer...needless to say they beat it. Look to the leasing company that can give you the lowest money factor with the highest residual and NEVER PUT MONEY DOWN ON A LEASE! THe point being that on a lease you want to preserve capital for other investments.
 

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No need to think much... driving 25K mi/year is not good for leasing even if you are able to pre-buy those extra miles.

+1.. Buy it, no headaches with the limitations of leasing, and looks cooler when you get pulled over. heheh
 

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Discussion Starter · #6 ·
Maybe I should have given more info. This car is payed for by my company (which means by me and my partner with tax deductions taken by the company- a better tax break for me than if If I pay personally as the corporation is taxed in a higher bracket than I am). I could pay cash for it, but my investments are making more money (higher interest) than I would lose paying the current interest rate on the car(even with the current economy) so this isn't the best option. As a surgeon, I need a car I can rely on, and doubt even if I purchased that I would keep it beyond an absolute max of 48 months (I would purchase the extended warranty to 100K miles which would keep me covered with loaner cars repairs etc if needed. So, now with this info buy or lease? Will there be enough residual value in a performance car with 100K miles and 4 years old to allow benefits to me on trade in, or will I still owe more than its worth making leasing a better option? I realize no one can anticipate what the car will be worth in the future, but just looking for opinions.
 

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Without getting too deep into it, I think leasing the car to the company and then making it your "company car" is the best option. If you buy it then you will need to depreciate it vs. writing everything off with a lease.

There are alot of articles on the Internet that goes into painful detail why leasing is always good if its for a business.
 

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I had a similar situation and my the savings for tax deductsion are slightly higher, but not a huge deal. I bought mine and the company depreciates it. If you put a ton of miles on the car the purchase options gets more attrative.

By the way I have a Deep Sea blue S5 and the color is awesome. I have black leather with black alcantara. But you will love the car.
 

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by my calculations you'll owe something along the lines of $12-13k at the end of 48 months.. i spec'ed out a similarly equipped 2004 M3 to see the BB value with 100k miles and it's still in the mid-high $20k's (i'm imagining it's going to be a similar realistic residual value), so you may be able to recoup more of your investment with a purchase at that price point.. depends on if that offsets the tax break for the company, i guess..
 

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Discussion Starter · #10 ·
I had a similar situation and my the savings for tax deductsion are slightly higher, but not a huge deal. I bought mine and the company depreciates it. If you put a ton of miles on the car the purchase options gets more attrative.

By the way I have a Deep Sea blue S5 and the color is awesome. I have black leather with black alcantara. But you will love the car.
Gotta post some pics. I would love to see it (it makes waitong for mine harder, but what the hell). Thanks everyone for your thoughts.
 

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Discussion Starter · #11 ·
by my calculations you'll owe something along the lines of $12-13k at the end of 48 months.. i spec'ed out a similarly equipped 2004 M3 to see the BB value with 100k miles and it's still in the mid-high $20k's (i'm imagining it's going to be a similar realistic residual value), so you may be able to recoup more of your investment with a purchase at that price point.. depends on if that offsets the tax break for the company, i guess..
Very very interesting!!!!
 
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