why is everyone saying "lease because of depreciation"

[MonkeyNutz]

No MonkeyNutz, I did not pay a total of $12,614.02, I paid a total of $303.72. There was no trade-in. At the end of the lease I pay another $395 and I'm done. My total cost for 24-months of lease (and 12,000 miles a year) is $698.72. That works out to $29.11/mo.

Yes, it was a $12,219.02 lease, but $11,915.30 was paid for by the manufacturer and tax credits.

Huh... Well, that's pretty cool.. Congrats on finding these idiots who made that deal for you!

I'm in CO too... And yeah, the incentives are really good if you do it right -- currently the $7500 fleet incentive plus $5600 from the state if you roll it into the lease or purchase. There's a few other little things you can capitalize on, depending on your location.

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[Byrus]

I think you have to go on the assumption that you turn the car in after 3 years. Basically, every thing I've ever read said it doesn't make sense to buy the car out (save for the pandemic when you could flip it for a profit). So going on that assumption I said you don't take the depreciation hit bc you dont own a depreciating asset.

 

[Mr Breeze]

I'm confused about how they tax car leases in Texas. Don't they tax on the whole price of the car? What about at the end of the lease if you buy it? Let's say it's a $50k car and $30k residual. TIA.

You get taxed on the payments such as if your payment is 399 you would be taxed your state rate on all payments

 

[Triggerhappy007]

You get taxed on the payments such as if your payment is 399 you would be taxed your state rate on all payments

Yes, that's how it works in 90% of other states but Texas is weird. That's not how it works here and I was looking for firsthand knowledge from someone in this state.

 

[Mr Breeze]

Yes, that's how it works in 90% of other states but Texas is weird. That's not how it works here and I was looking for firsthand knowledge from someone in this state.

I lived in Austin 12 years but never leased a car there ??

 

[Mr Breeze]

Yes, that's how it works in 90% of other states but Texas is weird. That's not how it works here and I was looking for firsthand knowledge from someone in this state.

There is a guy I use to watch alot on youtube his channel is caredge, they are extremely knowledgeable about buying and leasing and I know can help you. They will even tell you if your deal is good or bad. Check them out

 

[StevenC56]

So with this discussion of rapid depreciation on the Mach E, does leasing help you out with that situation if you were to buy the car at the end of the lease period vs purchase upfront? I know your can only get the $7500 incentive on a lease, not a purchase.

 

[Mr Breeze]

So with this discussion of rapid depreciation on the Mach E, does leasing help you out with that situation if you were to buy the car at the end of the lease period vs purchase upfront? I know your can only get the $7500 incentive on a lease, not a purchase.

It drpends on the lease terms, I would definitely check out caredge on youtube

 

[jay1122]

unless the leasing company guessed the residual value really wrong, you won't win. If you are already the type of person to swap cars every 3 year, Lease is a good idea. Otherwise, buyout and drive until at least 100k is always more cost effective.

 

[Triggerhappy007]

So with this discussion of rapid depreciation on the Mach E, does leasing help you out with that situation if you were to buy the car at the end of the lease period vs purchase upfront? I know your can only get the $7500 incentive on a lease, not a purchase.

You'll have to do the calculations for both for your area. In my state, I'll have to pay sales tax on the whole car when I lease and then pay sales tax again when I buy out the lease. Double Whammy.

 

[DennisD]

I think you have to go on the assumption that you turn the car in after 3 years. Basically, every thing I've ever read said it doesn't make sense to buy the car out (save for the pandemic when you could flip it for a profit). So going on that assumption I said you don't take the depreciation hit bc you dont own a depreciating asset.

Technically you don't own a depreciating asset but you are renting a depreciating asset using that analogy.

Most "entities" if you will, will cost you whether you own or rent it. On average, things that you rent in comparison to owning said entity will cost you more in the long run. You may at times be better off to lease but there have been more years than not that you would have actually spent more to keep a newer car on a "rental" basis as opposed to owning one.

The leasing companies make money more times than they lose money.

Jus' sayin'......................

 

[Byrus]

Technically you don't own a depreciating asset but you are renting a depreciating asset using that analogy.

Most "entities" if you will, will cost you whether you own or rent it. On average, things that you rent in comparison to owning said entity will cost you more in the long run. You may at times be better off to lease but there have been more years than not that you would have actually spent more to keep a newer car on a "rental" basis as opposed to owning one.

The leasing companies make money more times than they lose money.

Jus' sayin'......................

I don't think anyone is disputing that if you continually lease a new car every three years , leasing is more expensive than buying in the long run. I'm just saying right now, leasing a car that depreciates extremely fast and the technology is changing so quickly, leasing definitely makes sense.

 

[DennisD]

I don't think anyone is disputing that if you continually lease a new car every three years , leasing is more expensive than buying in the long run. I'm just saying right now, leasing a car that depreciates extremely fast and the technology is changing so quickly, leasing definitely makes sense.

It may be financially better to lease now than to own but I think it may be more wise to do neither.

Let the Dust settle if you will.

 

[ryannix123]

I can buy a 2022 Premium with 34k miles, 2x the miles of my car, for $17k less than what I owe on my 2022 Premium. The rapid depreciation of non-Tesla EVs is eye-watering.

This listing isn't an outlier, either.

https://www.cars.com/vehicledetail/82314133-5afa-4178-ac61-809dd58b0423/

 

[DaddyDeuce]

I can buy a 2022 Premium with 34k miles, 2x the miles of my car, for $17k less than what I owe on my 2022 Premium. The rapid depreciation of non-Tesla EVs is eye-watering.
https://www.cars.com/vehicledetail/82314133-5afa-4178-ac61-809dd58b0423/

That car isn't a fair example of market price. It was a lemon buy-back from Ford, title branded, and since it is a "single owner" car I bet the offered price includes the $4,000 tax credit.

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