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Zero money down, like 590 a month.

That's for an 03' with Touring and Navi.

Tell me guys, what kind of deals are you guys getting?

I test drove one today, loved it. (an 02 I test drove ofcourse :))
 

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How many months is the lease and how many allotted miles? Also, what is the lease end buy out? That would give me a good idea what money factor your dealer is using, unless you already know that firsthand.
 

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I just checked the figures on lease guide.com and according to it, a good average lease price with your figures comes out to $623 a month, so your $590 figure actually come a little below the average price, which seems good to me!
 

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how did you pull that off ...? for 3 years 15,000 mi, with 5k down my lease was the same amount $590 ... is you dealer running some type of special ... if whats the location ...?
 

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That is actually a very good deal. I have a '01. 3G's down, 540.00 a month for 48 months, 12,000 miles/year.
 

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Lease Deals

I'll throw mine in for comparison. 2002 MDX Tour/Navi with everything you see listed below, delivered July 2002.

Nothing down except title fees, taxes and 1st month's lease=$700

48 months @ $595 (taxes included)

15,000 miles per year.

Residual value at lease end-$ 20,098.00

With this low of a residual, I can buy cheap at end of lease or sell for a profit. I think most leases figure a residual at about 60% after four years which would have put me at about $24,500 with a
$ 40,865 cap cost. With a higher residual my payments would have been a little less, but this is a business lease and I am "paying down" with before tax dollars.
 

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please correct me if im wrong ...

marktr6:

this why i think a lease is a rip off

you said you signed a lease for $595 for 48 months ...

ok

$595 * 48 = 28,560

now you said you have a residual of 20,098.00 ... which means you could re-finance that to finish paying off the car ... or you could sell and make a few thousand ... becuase acura needs thier 20,098 ... or could wipe you hands clean by ending the lease ...

now this is how i see it ...

you just invested $28,560 in this car over 48 months ... now if you decide to keep the car you could pay off the residual ... which means you spent $48,658 on a this vehicle ... that more than 6k over msrp ...

another cenario:

now after investing $28,560 in this vehicle for 48 months ... now you want to sell it ... so lets say after 4 years the mdx is worth 28,000 ... so you sell it for $28k ... you owe acura $20,098 ... which leaves you with $7,902 ... now if we want to make a lease look good we can subtract that amount from you 48 months worth of payments ... which means you invested 20,658... so after you 48 months of payments you invested $20,658 ... then sold the vehicle ... and now your left with $7,902 and no car ... but hey you have 7k ... but what is 7k going to get you ... you guessed it ... either back in to another lease for 48 months or you will decided to finance and put the 7k down which is nothing when you are buying a 40k vehicle ... but either way you look @ it your lock for another 4 to 5 years ... unless you reall been saving your beans during your lease period ...

are yall with me so far ...

ok, here is the last and final cenario:

now after investing $28,560 into this vehicle for 48 months: you decied to turn the lease in for a new vehicle ... which means for another 4 years you will be making $500 dollar plus payments are a car that you will never own ... and will never be able to sell it for the amount you put in if you run into finacial trouble ...

now this is just a few problems i seen with a lease ... and this is with no money down ... it gets worse if you actually put money down ....

now if you are the type of person who doesnt mind or can take a never ending car payment then leasing maybe for you ... but my modo is think smart and buy smart ... after financing a car for 5 years ... you will have way more equity in a car VS a lease ... when it comes time to sell the car or to use as trade for a new car ... do the math and you'll see ... and dont let these dealers full you with the "with a lease you get to keep your money in your pocket" ... yeah but it keeps more money in their pocket ... plus they get to milk the h#ll out of that car ... whether you end the lease, or buy out ...

if there are any flaws or holes in what i am saying please speak up ... because this is something i've been researching for sometime ...
 

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Lease vs Buy

this is a business lease and I am "paying down" with before tax dollars
mymdxis coming,

The quote above, from my previous post, makes all the difference. The $ 595 per month is fully deductible, as I own my own business. We are an S Corp, taxed as individual.

This makes a difference with a 30% tax bracket, plus I never have to worry about maintenance. Usually turn them in with very few, if any, miles over warranty. I have been doing this for 16 years. My CPA has always shown me how leasing is a better deal, for me. He is the financial expert I am paying, why not listen to him? Leasing usually can not be justified financially for an indivual. The numbers prove it. If you have no way of applying the tax advantage, you are better off buying most every time.

Mark
 

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marktr6:

i forgot to exclude you from what i was speaking about becuase i did notice that you mentioned that you owned your own business ... im not sure what type of bonus's that offers but i know there is a discount ... tax breaks ect ...

but i was speaking on behalf of the 9 - 5 'ers out there ... another thing that i forgot to mention that some may not know but when you lease a car your also have a risk of getting higher insurance ... just something else to consider when thinking of leasing a car (excluding marktr6 :2: )

marktr6:

you said that the "The $ 595 per month is fully deductible" ... can take that for what it means ...?

so your saying that over the course of 4 years ... you would have gotten back your $28,560 in taxes ...?

please answer that for me ... and if possible explain some of the other major breaks you get for owning your own business ...

also do you have to "net" a certain amount to get these breaks on a lease ... im asking becuase i run my own business as well but its unofficial ...:2:

it may be a benefit to get it registered if i can get the same type of tax breaks you are getting ...:2:
 

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Lease

mymdxiscoming,

I'll try answering your questions.

you said that the "The $ 595 per month is fully deductible" ... can take that for what it means ...?
This means that on my business tax return I deduct $7140 per year plus insurance and operating expenses (gas, maintenance,etc.) for the MDX.

so your saying that over the course of 4 years ... you would have gotten back your $28,560 in taxes ...?
NO, not saying this at all. This would only be true if someone was in a 100% tax bracket. As an example, in a 30% tax bracket, my "effective" cost of the lease is only $5000 per year. You have to compare this to the fact that you are going to have to buy or lease something to drive anyway. If I were to personally buy or lease this MDX it would be with dollars I had already paid taxes on, social security and medicare, plus the matching company SS and medicare I would have paid.

please answer that for me ... and if possible explain some of the other major breaks you get for owning your own business ...
We are an S corp. There are no retained earnings allowed to be carried over at the end of the year. Taxes are paid on the individuals rate. However, the year's earnings are not subject to SS or medicare taxes. Therefore you pay yourself a salary that you can get by on each year and save the SS and medicare taxes and matching contributions on the year end profits. This amounts to 15.3% a year. (7.65% personal and 7.65% company matching). Another "break", I'll call it, is a SEPP plan. I can have the company put up to 15% of my pay in a plan like an IRA. It is not taxable to me until I withdraw. The amount can vary any year I want it to. The 15% is a maximum. This is not a payroll type deduction. It goes straight from the company checking account to Morgan Stanley, the plan administrator.

also do you have to "net" a certain amount to get these breaks on a lease .
To my knowledge, no. A company can even loose money every year for a certain period of years before it is required to be profitable according to IRS. It's been a long time (years) since I've seen those requirements, so I'm not real sure what they are. We have been profitable from day one for 16 years with revenues increasing every year, so this doesn't apply.

The best thing you can do would be to talk to a CPA. If you have a legitimate business it may be time to make it "official". A CPA can advise you whether a sole proprietor, S Corp, or C Corp, would be best for you.

Hope this helps some. If you want any more details email me at [email protected] and we won't bore everyone else here on the forum.

Mark
 

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thanks for breaking it down for me(i had to read it a couple of times but i got it) ... i will definitelly look into it more to see if it would be benefitial for me to register my business ... and this is definitelly interesting info ... anyone that gets bored and wants to leave ... is brainless ...

and i also like that you have the "comcast.net" email address ... which is my current employer ...:D
 
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