Lease almost up, what to do.....

[SOURCE 1]

I'm in BMW sales. You can use any car as a tax write off. You should see the amount of M6's and M5's that I sell under company names. If you can use it for work, then it's a write off.. Plain and simple.

Hell, we even get corporate ads suggesting these kind of deals to make it easier for our clients

Thanks!

 

[JeffShoots]

I'm in BMW sales. You can use any car as a tax write off. You should see the amount of M6's and M5's that I sell under company names. If you can use it for work, then it's a write off.. Plain and simple.

If you can use it for work like if you are a Realtor you would need four seats and to look professional might help sales but I don't know if a Realtor could argue an NSX is a good marketing tool :smile:

And I'm saying argue because by this time your in court. My Dentist had to give his NEW Porsche to the Tax Man

 

[jluko]

also consider that any car can have a tax advantage for three years (?) if you put a 'wrap around" advertisement on it- which you probably wouldn't want to do with your NSX but that is a way of getting "any" vehicle as a tax deduction for some years.

 

[JeffShoots]

also consider that any car can have a tax advantage for three years (?) if you put a 'wrap around" advertisement on it-

Get a "Pizza wrap" and make deliveries in the NSX :tongue: Your tips are going to suck

I don't know about the trunk for a pizza heater

 

[racer-ex]

Payoff is $65,000

Scenario:

If I were to put $65,000 in a cd for 7 years I would have approx $97,000 at the end of the 7 yeard CD term.

So the golden question is will the car be worth $97,000 in seven years assuming I put 2,500 miles a year on the car.

I am basing this on paying off the lease with a loan I could take for 7 years for $65,000 at 8%.

Just a thought.

yes!!!!

 

[MCM]

"will the car be worth $97,000 in seven years"
No, possibly closer to 1/2 of 97k (time will tell)

65k @5% for 7 yrs is actually $91,461.53 not 97k.
(PM me if you can get over 6% on a CD right now)

Here is what I would do.........
Assuming you have $65k and need it back in 7yrs.
Buy a super nice coupe around 35k. In 7 yrs, maybe the same 35? or more? $35,000?
(91-94 = Fully depreciated / 05 still depreciating)
Put 15k in a 5% CD 7 yrs = $21,106.51
Put 15k in the S&P 500 or other mutual fund. (ave 10% - 7yrs= $29,230.76)
Enjoy the hell out of the NSX, in 7 yrs your 65k investment will have
in all probability be worth quite a bit more than your initial investment.
Possible outcome= 21,106.51+29,230.76+35,000= $85,337.27
(Not bad! Plus you had the privilege of driving a great car for 7 years!)
Your results may vary............

Just another option.........:smile:

 

[Ultraman]

"will the car be worth $97,000 in seven years"
No, possibly closer to 1/2 of 97k (time will tell)

65k @5% for 7 yrs is actually $91,461.53 not 97k.
(PM me if you can get over 6% on a CD right now)

Here is what I would do.........
Assuming you have $65k and need it back in 7yrs.
Buy a super nice coupe around 35k. In 7 yrs, maybe the same 35? or more? $35,000?
(91-94 = Fully depreciated / 05 still depreciating)
Put 15k in a 5% CD 7 yrs = $21,106.51
Put 15k in the S&P 500 or other mutual fund. (ave 10% - 7yrs= $29,230.76)
Enjoy the hell out of the NSX, in 7 yrs your 65k investment will have
in all probability be worth quite a bit more than your initial investment.
Possible outcome= 21,106.51+29,230.76+35,000= $85,337.27
(Not bad! Plus you had the privilege of driving a great car for 7 years!)
Your results may vary............

Just another option.........:smile:

Hey this is a very good analysis - I think we have many money-wise car enthusiasts on this board.

 

[Jetpilot3]

Hmmm...I'll chip in as a new NSX owner but an older model one (1991).

You've got the last year of a wonderful sportscar and are the only owner. Now I'm not sure what your age is but I'd rather keep the car for the simple fact that its rare and your its only owner. You can't go and buy another 05 NSX anymore brand spanking new (lucky you!). Plus having read your initial post you love the car and that's probably worth more than money...it is for me anyway.

Look I have a great portfolio and I'm 31 years old but I don't think its the be all to save most of your money for retirement when you could be enjoying some of it now. Keep the NSX and arrange new financing or do as MCM said and sell the car, invest, buy an older coupe, and you might be well off.

But I have to agree the car won't appreciate and will be worth 1/2 - 3/4 of what it was new as its the last year, single owner, etc. If you refinance it and don't want the car in 3 years I'll buy it.

Jetpilot

 

[SOURCE 1]

If you can use it for work like if you are a Realtor you would need four seats and to look professional might help sales but I don't know if a Realtor could argue an NSX is a good marketing tool :smile:

And I'm saying argue because by this time your in court. My Dentist had to give his NEW Porsche to the Tax Man

Dont get me wrong... I am a realtor and if I am taking clients out ( more than one at a time) I am going to drive something to be able to do so. BUT I also own a car dealership, service center, and a real estate investment company. The nsx definatley helps with all of the above! Its says (when pulling up) successful yet very smart with money ( due to the fact its not an unreliable POS supercar) Some of the RE clients do not know what the car is and its a great ice breaker. It has also done very well for me in the higher end housing market... More so if its a well off 30-45 yr old guy that I am dealing with. Most of them would rather see someone there doing business with pull up in an nsx rather than a 95 crown vic that alot of older realtors drive.

Which Realtor would you want to go with? I know my answer.

The advantages of it at my dealership and service center are endless! People know the car and when they see it in the area driving around they say "oh thats that car that sits in front of that car dealership or service center" and its memory recognition thing that works! They immediatley think about the dealership and it keeps the place in there mind without even seeing the actual location.

doctor= cant write off a porsche as a buisness expense.
car dealer= can and would rather drive an nsx

lol

Brian

 

[Big_D]

If you can afford to do so, then keep it and buy it outright. You can finance it through a credit union and get closer to a 5% interest rate.

 

[BD]

Get rid of the car, if you want an NSX still, find a 02/03 for 10 to 15 grand less. Essentially the same car with similar amount of mileage. You get a bonus, passenger door lock release:biggrin:

Or, extend the lease, Honda will let you do just that.

Or, buy the car with 1300 per month payment for five years

Or, pay cash for the car and wondering how much you would be making if you invest the money instead

Or, invest the money and wondering why you're not driving the car you loved

 

[TURBO2GO]

Get rid of the car, if you want an NSX still, find a 02/03 for 10 to 15 grand less. Essentially the same car with similar amount of mileage. You get a bonus, passenger door lock release:biggrin:

Other bonuses:

You get to sell the car you knew well and buy something you don't know the history of.

You get to lose most of your warranty.

You get to lose the last model year made and perhaps the color combo you chose.

and best of all you get to pay sales tax and registration fees all over again.

Nevermind the amount of time you have to waste looking for that clean 02/03.

You also have a car that you paid less for, but is always also worth less at resale (although by a lower margin).

Is all that worth the savings? For me, no.

 

[BD]

Other bonuses:

You get to sell the car you knew well and buy something you don't know the history of.

You get to lose most of your warranty.

You get to lose the last model year made and perhaps the color combo you chose.

and best of all you get to pay sales tax and registration fees all over again.

Nevermind the amount of time you have to waste looking for that clean 02/03.

You also have a car that you paid less for, but is always also worth less at resale (although by a lower margin).

Is all that worth the savings? For me, no.

BINGO!!! lol, you nailed it to the wall.

Correction though.

1. you will have to pay the sales tax and registration regardless because end of the lease term the vehicle is count as a used car sales, and it is also time to get new tab. Either way it will appy to a new purchase, or keep the current car.

2. Unused balance of the warrente can be refunded, and if you buy a used Certified NSX from Honda/Acura, you will have 100k drivetrain warrente, and extended bumper to bumper warrente can still be purchased, but the protection perioud wouldn't be as long, but will be cheaper.

3. Some times, you can find a car that is cleaner than the one you have with lower mileage. ie. I bought my certified used 2003 in 2005 with only 3600 miles on it and it was 20 grand cheaper than a new NSX, and I had the 100k/7 years (which ever comes first from the original date of purchase) miles warrente.

4. Find out if Honda is running through the dealer special financing. I got 4.49% and it is about 2.25% cheaper than I can get through my credit union; you can however, find out if the special financial is offered to individuals as a lease buy out option, a simple phone call can do, but I have never seen it applied, but only through the dealers. If the deal still alive, you can save thousands on interest charge. There is also a trick, if you know a dealer well enough, they can do the financing for you through them, of course they will want some thing in return and each dealer varies in policies.

5. If you want to keep the car, you may be able to negotiate a lower buy out. The reason is because if Honda has to take it back, the car will most likely end up on the auction block, and no one will pay 65k for whole sale. You need to find out what the value is and make an offer. The don't want the car back, it is a big hassel for them to go through that process.

Only lost is time, to some, it could be the decision maker

Therefore... It is indeed a tough decision.

 

[SilverStone05]

Good post. My lease is up next August. I guess its time for me to start weighing my options as well.