View Full Version : lease or buy
05-28-2000, 11:36 PM
well i have narrowed it down to what truck i will be getting. Ive decided on a 2001 gmc sierra 2500 ext cab fully loaded 6ft bed. I will be getting it for about 30,000 bucks. i cant decide whether i should lease or buy. i want to lease because i could put alot less down ($3,000 instead of $15,000) and have alot lower payments. at the same time i feel like if i lease it the truck wouldnt be mine. it wont get beat up because all my equipment will be going in the trailer so im not worried about damage. Even if i were to buy it i dont think i would keep it for more than 3-4 years because i dont feel like dealing with mechanical difficulty. The dealer will not be able to start turing in orders to GMC till end of June probly and i wont have it till october. You guys might think im crazy for spending so much for a new truck ut i figure i work so dam hard for my money.... for once im gonna spoil my self! what do you think i should do?
05-29-2000, 02:28 AM
evan asked:<p>>what do you think i should do? <br> <br>I think you should buy a good used full size <br>reg cab 8 ft box GM p/u for under $5000 that was<br>lovingly maintained and was only used to go fishing by some old retired guy.<br>
05-29-2000, 05:07 AM
I agree about getting a well maintained used truck. I have a feeling from your post though that this will also be a vehicle for personal use. If thats the case I can understand why you want to buy new. I see some incredible deals out there on 2-5 year old trucks in great shape, so don't let the shiney new paint get you too excited!! Good Luck with whatever you decide though!!<p>----------<br>"guido"<br>David M. Famiglietti
05-29-2000, 07:56 AM
I will concur with the rest, that new truck will remain so for a day, then join the ranks of the scratch and dent specials after the first week of work use.<p>Been there. Not likely again.<p>Bill
05-29-2000, 09:52 AM
The question is will you be able to stay within the mileage limits of the lease.If not you will be paying an outrageous penalty.<br>I saved over $5000 when i bought my 99'chevy used with 3000 miles on it.you can also check the background of the used truck by using the vin# on the net.Hope this helps.<p>----------<br>DON<br>LIANNES' MOWING<br><p><font size="1">Edited by: DMC300
05-29-2000, 10:44 AM
I agree, try and find you a nice used deisel truck. Lot of them out there for under 15,000$. But if you choose a 30000$. i would go with a lease if you can stay within the milleage quota if the penaltys are high. Something may happen to where you ccan't make the high payment. Would be nice to know the end is near in a lease
05-29-2000, 11:04 AM
I got a 99' 3/4 ton 4x4 with 12,000 miles for under 20 thosand with the idea it was going to be my personal vehicle. We dont put tools in them much ether but the cab will still get filled with grass, dirt, mulch ect.<br>I cant imagine what this would do to a plush, fully loaded cab! Get a god used truck , Chemlanw sold 93 f250's with 90 some thosand miles for $1,200 And They look vary nice on the outside to. if I had know there would be three of them in my driveway now!
05-29-2000, 12:29 PM
05-29-2000, 01:29 PM
Ask your accountant. The deductions may sway your decision.
05-29-2000, 04:31 PM
I like buying new because you will have no problems for a few years and that alone is worth the extra payments but buying used is always cheaper. I would have 2 good mechanincs look at the truck if your buying used and take your time looking around if you do buy used. I think new is the best way to go if your going to use the hell out of it why not put all the miles on your self and take care of it yourself (high octane gas, Oil changes every3k) i would say buy new dont lease (chevys last forever)or 95 and up nothing older. Good luck.
05-29-2000, 08:26 PM
Assuming you have another car available for personal use and this truck is "strictly" for business use it will more than likely be to your tax advantage to lease the vehicle. Your entire lease payment will be deductable. I'll try and give you an example using 15,000 miles a year for the first year. Purchase vehicle actual expense method:depreciation=$3060 (20% of vehicle cost limited to $3060), gas=$1500, insurance=$1000, repairs and maintenance=$750, this gives you a total deduction of $6310. Purchase using standard mileage will give you a total dedction of $4650. Now I'll give you the figures using the lease method. Lease using standard mileage will give you the same deduction of $4650. Now leasing using the actual cost method:lease payments=$4800(assuming $400 a month), gas=$1500, insurance=$1000, repairs and maintenace=$750, giving you atotal deduction of $8050. this gives you a $1740 bigger deduction than purchasing. Assuming your in the 28% bracket plus 15% self employment tax this gives you $748 additional dollars in your pocket every year, over 4 years you save almost $3000(this figure varies a little bit since the depreciation deduction for purchasing varies from year to year). If you tell me your lease payment amounts, mileage for the year, and insurance costs I will redo all the numbers and give you actual figures to see which method is best for you.
05-29-2000, 08:35 PM
I forgot something for the purchasing method the interest on the loan will be deductible, this will be somewhere around $1000 for the first year but get less and less as the years go on.<br>
05-29-2000, 09:36 PM
I'd be carefull leasing because of possible damages. All those scratches and dings can add up quick when the lease is over and the dealer wants you to pay for them. A work truck should be a "work" truck. Worrying about getting mud on that nice carpetting and being afraid to load mulch gets tiring after a while, and before you know it that brand new truck can look like a 10 year old truck. Also, hired help, if you have any, can really put a beating on a nice new truck. <p>steveair
05-29-2000, 10:02 PM
Buy the truck in your name and then have your company lease it from you. You still get the benefits of owning but the company gets the immediate tax benefit of leasing and does not have to worry about dents, miles, etc. However, this does not work if you are a sole prop. Only s-corp, c-corp, or LLC's can do this.
05-30-2000, 12:07 AM
i think i have decided to lease.... this way i will only put down 3 or 4 thousand instead of 15 thousand and ill get a brand new one every 3 years before things start going wrong. i think im also going to spring and buy a new inclosed trailer when i get my new truck.... that way i wont have to pay storage costs!
I'am fixing to buy another work truck this week, check Dodge and Chevy, I do a large number of business w/ the Chevy dealer so I gave them the deal, also because I was looking for a 2000 1ton cab/Chassis w/ 4x4 & diesel 5spd, it list for 27,000 they will sell it to me at invoice of 24,000 plus $2,500 rebate for the 1ton cab chassis, Single wheel,and if I go through a certified GM Upfitter for the flatbed I get another $600 rebate, just happens that my trailer dealer is certified Upfitter, the nicest flatbed w/ leak proof tool boxes will run $1,532 installed so the New diesel 4x4 1ton will only cost $22,432 w/flatbed installed all I have to get is the tax and tag which will run under $1,000 for commercial truck. The truck does have cloth seat,A/C, tilt, cruise, rubber floor covering. I also am thinking of leasing this truck and purchase it at the end just for the tax write off, also won't have to watch the miles, and I am sure I could always sell it for the purchase price and get around the miles.<p>----------<br>T.J. Greenfield<br>email@example.com
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