Quote:
Originally Posted by jcmaz
@Welfare, had to break up the paragraphs; it was pretty hard to read. Are you planning to lease/finance through the manufacture (ie: Toyota/GM finance) or third party financing?
|
In house
Quote:
That is correct; you are paying taxes on the amount of car that you are leasing. For example, if you are leasing a $50k car and residual value is $20k, then you are paying taxes on the $30k through monthly payments. At the end of the lease contract, you can pay the $20k plus tax to own the vehicle.
Not quite sure what you mean by relieves you from paying tax. If the someone buys out the vehicle, they pay the tax on the buy out amount. For example, you've made 6 payments of $1000, for $6000 in total assuming interest rate of 0%. They would pay $44k plus tax and whatever buyout fees.
IF the third party has PST number, they STILL HAVE TO PAY TAX. All they do is claim it back from the government.
|
But not if it's a buyer from South of the border though right?
Quote:
Depends on the lease or finance contract and whatever fees are associated with breaking the contract. I would personally be wary about doing a lease and having a third party buy it out in 6 months.
Usually with most vehicle purchases, you're highly underwater with negative equity so you could be potentially stuck with a depreciated asset even with factory leasing programs.
Negative equity is when you owe $50k but your truck is worth $35k. Please don't be that guy who's stuck with a money pit.
|
Actually with our in house leasing, there's no penalty for breaking it, apparently.
I'm an employee so i get the vehicle almost at cost.
Basically I'm trying to capitalize off the fact that the US dollar is strong, the market is extremely dry right now because of manufacturing shortage from covid, and my cost of the truck is significantly below msrp.
In 6-8 months it'll be spring/summer. Which is primetime for truck sales. I'm hoping the market will still be at least somewhat dry.
I browsed through cl Seattle today for similar trucks in last year's model, and they're going for $15-20k more (after converting) than the net lease on what I'm looking at for this year's brand new.
And this year's have a higher msrp than those ones did last year.