I am 18 years old, 19 in August. I am going to buy a car, whats smarter, to buy a cheap one, a new one, or to lease a new car? I have been told never buy anything that decreases in value, and that most business men/women always lease their cars and drive the latest car every year?
If I purchase through my dads business, I know I can claim back tax.
2007-07-03 08:50:17 · 15 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
there are several things to consider with leasing a car.
1-how much will insurance be as compared to buying the same car?
2-can you stay under the mileage limits?
3-do you plan on doing any aftermarket enhancements to the car?
as long as you are comfortable with the answers (and associated costs) of those three, there is nothing wrong with leasing a car, especially as opposed to buying a cheap/old car. by the time you finish paying off an older car, you will most likely have to buy another. if you buy a new car, and your mileage is low, you will be able to drive that car for several years without making payments when all is said and done.
but, if you are the kind of person who would rather be always driving the latest model, then leasing may be the option for you. again, the costs and limitations of the 3 factors above should be identified before you lease a car.
2007-07-03 09:01:39 · answer #1 · answered by spaz 3 · 0⤊ 0⤋
The reason for the lease is that they can write off the lease cost as an expense. If you buy a car from
Daddy's business then wouldn't the car have to be in the business's name. This would make his company liable if you were in an accident. Don't know if I'd want that.
If you buy the car you will have the expense of the purchase price, but after a year or two you still have an asset. It may have decreased in value, but you did get the use of the car for that period of time. With a lease you have nothing, and if you go over the mileage limit, they charge something like 15 or 20 cents a mile. That can add up in a hurry and run into thousands. Buy a cheap one, and learn on that one. It will be your first car and you'll never forget it, and you'll put a ton of miles on it. good luck.
2007-07-03 09:00:08 · answer #2 · answered by Fordman 7 · 0⤊ 0⤋
That's great that you wan to buy a car. Ask yourself a few questions before you do that though such as Do you really want to drive the latest car every year and go through all the paperwork, insurance every year. Leasing a car (in my opinion) is not te best choice because first of all, you are paying so much money for it that by the time your lease ends, you already paid enough money to own the car. Also, people don't take care of leased cars b/c it's not their car. They don't change it's oil, take care of transmission or anything. I would get a new car something you really love, drive it for 3-4 years, then sell it (Privately, Dealers don't give you a good deal). Then Buy a new one.
Hoep I helped.
2007-07-03 09:03:14 · answer #3 · answered by 2cte4u 2 · 0⤊ 0⤋
I would buy a car - I won't ever lease one again. Yeah, a lease is cheaper, but you're still paying for the most expensive part. It depreciates the fastest in the first year or two, and that's the part you're paying for.
Financially, the best deal is to buy a used car that's in good condition, and drive the wheels off of it. Go to the cartalk website (it's those guys Click and Clack on NPR), click on the "actual car information" tab, and start looking around. You'll find lots of good info. And the "mechanics file" section will let you find a mechanic in your area that can look at a car and tell you if there are problems or not.
2007-07-03 09:02:43 · answer #4 · answered by Ralfcoder 7 · 0⤊ 0⤋
Actually, the BUSINESS can claim it, not you. Businesses can claim it as a business expense and write the payment off of their taxes. Businesses are taxed on their profits, not on their income. Businesses can claim that the lease is a business expense because of the payment and the car being in the business name.
Individuals without a business who work for someone else don't get this write-off. Sorry.
I'd suggest a lightly used Japanese Accord or Civic coupe from the early 2000s. Stick with Honda and Mazda. Toyota quality has been decreasing lately. Depreciation is a necessary expense with any car. You have to strike a compromise between economy of a used car, and the diminished life left in a car because it is used.
2007-07-03 09:34:53 · answer #5 · answered by camrylev6 2 · 0⤊ 1⤋
Depends on what you can afford. If I were you I'd get a fuel efficient Japanese car. Nobody is buying SUVs, much less used ones. That and gas prices could go up A LOT over the next 5 or 10 years. Japanese cars generally have cheap maintenance as well, and are very reliable. Look into a Camry or an Accord.
2007-07-03 09:23:22 · answer #6 · answered by largegrasseatingmonster 5 · 0⤊ 0⤋
Don't buy........ChevriletMatiz, Chrysler Voyager, Dodge CaliberFiatPunto (1999-2006) Peugeot106(1996-2003) Rover200/25 (1995-2005), Citroen Xsara (1997-2004 ) Renault Megane (1996-2003 ) Land rover Freelander !1997- 2006) WHICH MAGAZINE gave them the thums down.
2007-07-03 09:05:11 · answer #7 · answered by xenon 6 · 0⤊ 1⤋
Business men/women lease their cars because they use them for business and can deduct the costs as a business expense on their taxes. If you lease, you never own the car, you're just "renting" it.
2007-07-03 08:58:28 · answer #8 · answered by Anonymous · 1⤊ 0⤋
I don't know what your financial situation is, but I'd go with a cheapish used one. I've seen a lot of young people buy or lease new cars and get killed on the insurance payments alone.
2007-07-03 08:58:38 · answer #9 · answered by EGC 3 · 1⤊ 0⤋
Your best bet would be to buy a used car you can pay cash
for. That way you don`t have any monthly bill for a car.
Also this lets you get practice with a used car and not a new one.
2007-07-03 08:59:54 · answer #10 · answered by Milk Man 4 · 1⤊ 0⤋