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Buying vs. Lease (Again but with a twist)

Discussion in 'Off Topic' started by Raincloud, May 24, 2017.

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  1. Raincloud

    Raincloud Member

    Joined:
    Apr 19, 2017
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    Location:
    Atlanta, GA
    Looked at some threads on this and I think I have a little unique question.

    I run a small business and am able to benefit from deductions/depreciations. Planning to get a MX any day now and can't figure out whether to Lease or Buy. Ran numbers with my CPA and he says technically both give me the same benefit (of course he did not take $7,500 Federal credit into consideration).

    With a lease I would be able to deduction lease payments and repairs/electricity, etc at actuals vs. with purchase the interest on the auto loan will be a deduction and the depreciation for the 1st year upto $25,000 and then 2nd to 5th year equally divided. Plus repair/electricity at actual.

    FWIW, I am in the great state of GA which I understand is not a lease friendly state as you end up paying 7% of the total cost in taxes.

    Just wondering if anyone has any opinion one way or the other? With a lease I plan a 36 month 15,000/month lease but with purchase I plan a 48 month loan. The payments for both are very similar and does not make a difference to me.

    Appreciate your responses.
     
  2. bcampbelllds

    bcampbelllds Member

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    North Dallas, Texas
    I leased here in Texas and wish I would have purchased. Also took a 6.25% sales tax hit because in Texas you have to pay all the sales tax up front. Sounds like in GA you have to do the same. Plus I drive more than I anticipated, so I may owe a few thousand at lease end.

    Honest opinion is go with the purchase. You will drive a lot more than you think.
     
  3. Raincloud

    Raincloud Member

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    Apr 19, 2017
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    Location:
    Atlanta, GA
    Thanks for the response. I agree with you and somehow leasing doesn't feel the same as owning. But my major concern is the resale value. With leasing I can return it after 36 months and then let Tesla deal with it BUT with the loan it is mine. I am just note sure how the electric/self driving market would be in 2020-2021 and that is what it making it hard to decided one way or the other.
     
  4. habanero69

    habanero69 I Dont Need Cialis. I Drive an EV.

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    Location:
    FLorida
    I would expect it to be VERY rough/competitive. You will have the Model 3, AND who else may have introduced by then. Not that this helps in any way, but I can't imagine resell values holding up at ALL. YMMV. :confused:
     
  5. Raincloud

    Raincloud Member

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    Location:
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    I agree but a 3 year old MX will be competing in the resale market with 3 year old other cars and I don't see any other car manufacturer yet close to what Tesla has to offer now. So a potential buyer with a budget for 3 year old car and a desire to get a SUV/Cross would have choices between 2017 MX, BMW X-5, Porsche Cayenne, etc.
     
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