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Buy or Lease?

topgun007

2.5L Hybrid
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The latest I've heard is my Maverick is scheduled to be produced Jan 16th.
I had initially thought of paying for it fully using extra cash, but have also started thinking about a lease.
Anyone know what current lease terms are like? If I kept the money, would keep it in savings earning 4%.
Have also been saving up to buy down on a house so there's that, and my income can vary a good bit a mth. as I'm self employed.
With a lease I could upgrade to a newer model if there are more kinks/recalls in the newer models that get worked out over time.
The truck will be used 60% of the time for my own sole LLC business, so can get a good portion of it written off tax wise over time.
If the interest rate is high then I would likely just pay for it fully.
Have an older diesel truck that is not valued as a trade in, but can likely sell it for a large portion of what the Maverick goes for.
Just debating on whether to buy or lease.
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LM42

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I would look up lease rates from Ford and your local bank/credit union. As a business don't you have more tax benefit for leasing? I am no financial advisor, but that cash would be better served in an appreciating asset like a house than a depreciating one. Especially if you already have tax benefits as a business owner
 

AutobahnSHO

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Lease all depends on what the resale value will be at lease end. Some people are making out like bandits because prices shot up way more than expected. But it could work the other way too.

I would be very wary and agree with the guys who say to compare lease/ loan rates.... carefully!
 

Saul T Knutz

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Lease in business name, get tax deduction. Maybe you get another Mav when the lease is up, maybe there's something else like the Mav you get when the lease is up...or buy the Mav outright and deduct the whole cost from your business's taxes...but I'd also say consult your accountant as I have no idea how much you're bringing in vs spending vs tax liability....and remember, you can use the fee you pay for the consultation as a tax write-off
 

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CTYankee

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Things you need to consider other than rates - how many miles do you put on in a year? That can be fairly restrictive in a lease and expensive if you exceed it but don't want to keep the vehicle at lease end.

Turning back a lease car can also be problematic unless you keep it in absolutely pristine condition because the lease company will attempt to charge you for anything they can claim exceeds normal wear and tear. Dings, scratches, and the like will typically be considered damage, not normal wear and tear.

Finally, you'll never build equity, so the truck will never become an asset. Buying at the end of the lease will either use your cash anyway at that point or add more interest to the cost of the Maverick.
 
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topgun007

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Good points all. I usually take the mileage deduction and only average 8k miles a year.
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