Topic: Should I lease?

[blotter]

I've asked the buy/lease question so many times of my accountants over the years and continue to be told that it does't much matter. There are other factors to consider as has been pointed out above.

Even if there isn't many advantages to leasing, I suspect I will lease anyway.  Not sure I would be approved to finance a Mazda6 GS.  As I haven't worked legit for a few years.  So I would like to register my business, and keep records, that way down the road, I have proof of income for larger loans.  I was approved for a Nissan Versa Note 3-4 months ago without a problem.  So I suspect leasing a Mazda6 shouldn't be a problem.  Since the rate is the same whether I finance or lease, doesn't really matter.

Approval at a dealership is a joke.   
When I got my Tacoma they basically asked me 3 questions (ok, maybe more)
A) Income?
B) What's the house worth?
C) What's your mortgage payment?

2 minutes later she said "approved"

No proof of income required and no questions on what was left owing on the Mortgage.

And remember the smaller the business the more likely to get audit 
Been in business for 29 years, I buy my vehicles, and just hand over the bills to the accountant to put things into the right column   

that's the key right there.  Having an accountant.   
anyone business owner I deal with here at work that's having issues, are folks with no accountants.

[ArticSteve]

Approval at a dealership is a joke.   
When I got my Tacoma they basically asked me 3 questions (ok, maybe more)
A) Income?
B) What's the house worth?
C) What's your mortgage payment?

2 minutes later she said "approved"

No proof of income required and no questions on what was left owing on the Mortgage.



It's not a joke.  The dealer entered your details into the Toyota Financial Services system where Toyota Financial Services ran you thru both Equifax and TransUnion.  You where reported as credit worthy so BINGO .... loan.

[wing]

If you have good credit you will be approved.  I was approved without a job while in school for a 25k car lol

[Solstice2006]

Possibly thinking of the GT now.  Mazda has changed the packages a bit for a 2015, for the worse.  With the GS it doesn't come with sunroof (but that doesn't really bother me). Any if you get the luxury package ($2800), adds sunroof, leather seats and door trim, navi, lumbar support.  But you can only get the luxury package with automatic.  This is what bothers me. 

So instead of opting for the luxury package, and getting the GT, which is $2000 more than a GS with luxury package.  I get 19" wheels, HID lights, 11 speaker Bose system, Moonroof, Navigation, 4 way power passengers seat, auto levelling lights (no biggie), and auto dimming mirrors (no biggie). 

With this car, the 17's don't fill the wheel well that great, so the 19's is rather nice.  So getting the GT, this way I can have the manual. 

Would these seats be real hard to keep clean?  I don't wear jeans that much.  And would have a cover in the back seat under the car seat.  The red exterior with the off white looks really sharp. 

[pi314]

won't that increase the cost by quite a bit?

[Snowman]

My accountant was pretty clear that CRA is really picky about vehicle expenses and businesses owning vehicles these days.  She thought it was better that I owned a vehicle myself and deducted expenses to run the vehicle (Be it mileage, repairs etc) rather than having the business own the vehicle.   Less red flags

Same here, my accountant said I would be nuts to buy a car though the business and the warning klaxons would go off. Just expense a personal car for business use. 

[Solstice2006]

I don't plan to have business owned car.  I will lease a vehicle, expense 50% business, 50% personal, keep a log.  And deduct whatever I can come tax time.  Especially gas, which I use for my lawnmowers, snowblowers, weed eaters, leaf blowers.  So adding a bit to my car, is fine by me. 

[Solstice2006]

won't that increase the cost by quite a bit?

We will have to see what the dealer says.  According to Mazda.ca its $4800 more to have the GT, but since I was considering the GS with luxury package, it's only $2000 more.  So not a huge difference.  I think it was something like $40 a month difference on a 4 year lease. 

[Hannibalsmith]

won't that increase the cost by quite a bit?

We will have to see what the dealer says.  According to Mazda.ca its $4800 more to have the GT, but since I was considering the GS with luxury package, it's only $2000 more.  So not a huge difference.  I think it was something like $40 a month difference on a 4 year lease.

That difference probably amounts to the tax savings by expensing the lease...man you really want this 6...

What's your timing for purchase, realistically?

[Solstice2006]

won't that increase the cost by quite a bit?

We will have to see what the dealer says.  According to Mazda.ca its $4800 more to have the GT, but since I was considering the GS with luxury package, it's only $2000 more.  So not a huge difference.  I think it was something like $40 a month difference on a 4 year lease.

That difference probably amounts to the tax savings by expensing the lease...man you really want this 6...

What's your timing for purchase, realistically?

Haha, your one to talk, haven't you waited like 6 months for a BMW? 

After going through other forums.  I have read the navigation is really complicated, and one of the worst in a family sedan.  The 19" Dunlop SP tires that come on the GT aren't very good.  I know OEM tires are never very good. But when you pay for the higher trim (bigger size, you would hope for something decent).  And since I don't care about the moonroof, or the auto dimming rear view mirrors.  The GT trim is looking less favourable now.  The only strong points on the GT for me is the leather seats, the upgraded stereo, and the HID lights.  So I am not paying $4800 extra for that (although it wouldn't be that much since it's a lease, but you know what I mean).

I am making my 2nd trip visit next week.  I will take it for my 4th test drive.  This time at dusk around 7. They said it would take a couple of days to get in. 

[Hannibalsmith]

won't that increase the cost by quite a bit?

We will have to see what the dealer says.  According to Mazda.ca its $4800 more to have the GT, but since I was considering the GS with luxury package, it's only $2000 more.  So not a huge difference.  I think it was something like $40 a month difference on a 4 year lease.

That difference probably amounts to the tax savings by expensing the lease...man you really want this 6...

What's your timing for purchase, realistically?

Haha, your one to talk, haven't you waited like 6 months for a BMW? 

After going through other forums.  I have read the navigation is really complicated, and one of the worst in a family sedan.  The 19" Dunlop SP tires that come on the GT aren't very good.  I know OEM tires are never very good. But when you pay for the higher trim (bigger size, you would hope for something decent).  And since I don't care about the moonroof, or the auto dimming rear view mirrors.  The GT trim is looking less favourable now.  The only strong points on the GT for me is the leather seats, the upgraded stereo, and the HID lights.  So I am not paying $4800 extra for that (although it wouldn't be that much since it's a lease, but you know what I mean).

I am making my 2nd trip visit next week.  I will take it for my 4th test drive.  This time at dusk around 7. They said it would take a couple of days to get in.

Lol you're right, I think it has been like half a year. Well worth the wait. Although I can't comment on the specifics of the 6, other than its a great looking car, the one piece of advise would be not to settle. Even if you have to wait, get exactly what you want.

[Solstice2006]

Hannibal, like you I have already thought of rims for the vehicle.  The GS comes with 17" with Yokohama's AVID TOURING-S (which kinda suck).  So I will get winters (haven't decided which yet) and put them on the OEM rims.  And put summer tires on 18" rims.  Specifically, 18" rims from a Mazdaspeed 3 gen II, which match perfectly. Have found some on Kijiji already. Then if I decide to return the vehicle after the lease is up, I will put the OEM yokohamas back on the OEM rims. 

 

[blotter]

Approval at a dealership is a joke.   
When I got my Tacoma they basically asked me 3 questions (ok, maybe more)
A) Income?
B) What's the house worth?
C) What's your mortgage payment?

2 minutes later she said "approved"

No proof of income required and no questions on what was left owing on the Mortgage.



It's not a joke.  The dealer entered your details into the Toyota Financial Services system where Toyota Financial Services ran you thru both Equifax and TransUnion.  You where reported as credit worthy so BINGO .... loan.

Mortgages don't show up on all reports (you have to pay extra for that service)
I don't know, there should be more to simply having a good score. 
The information they based my approval on doesn't actually tell them I CAN afford the payment. 
I'm sure due to my score, they're assuming I'm fine.   Plus I'm sure my history with TFS also goes a long way.

[quadzilla]

The information they based my approval on doesn't actually tell them I CAN afford the payment. 

I've had more credit given to me when I wasn't working than when I was.

[blotter]

I guess I work in a place and in a way that really makes sure people can afford payments / right thing to do.

[tooscoops]

same... i basically want to qualify them first based on normal conversation... lets me know just what to expect trying to get an approval from the bank or whether they should be thinking along different lines getting a car.

so along the credit/affordability lines... is this loaded up car really what you need?.. is it really something that makes sense? not at all trying to overstep here, but you have been not (officially) working for years and now are going back, i would assume because the household could use the cash?...

only bring it up do to a conversation with our secretary today... bought a brand new fusion a couple months back and is having trouble making ends meet. but of course decided that she *needed* leather and nav and all those toys in a brand new mid-sized car... this is the kind of car that used to be considered a fancy luxury, but now people think it's what they need and deserve because they have a job. (her, not you solstice!)

just don't want you overextending on your first new car in a long while... it's no fun to get just what you want but have it taken away or not be able to afford to actually enjoy it.

[Ex-airbalancer]

only bring it up do to a conversation with our secretary today... bought a brand new fusion a couple months back

She works at a Chrysler dealership and she bought a new  ford , her ass would be down the road if I owned the place

[tooscoops]

her husband used to build fords.. so there is a reason there...

but i agree... of those who own their own cars who work here, less than 50% are chryco... don't like it and think it needs to be addressed.

[Solstice2006]

only bring it up do to a conversation with our secretary today... bought a brand new fusion a couple months back

She works at a Chrysler dealership and she bought a new  ford , her ass would be down the road if I owned the place

What happened to buy what you want.  If Chrysler can't make a vehicle that's not at the bottom of CR, why should I buy it?  Think I would buy a Caravan over an Odyssey.  Yeah right!  Or a Fiat over any other compact?  Nothing the employer can do over what vehicle you drive. 

[Solstice2006]

same... i basically want to qualify them first based on normal conversation... lets me know just what to expect trying to get an approval from the bank or whether they should be thinking along different lines getting a car.

so along the credit/affordability lines... is this loaded up car really what you need?.. is it really something that makes sense? not at all trying to overstep here, but you have been not (officially) working for years and now are going back, i would assume because the household could use the cash?...

only bring it up do to a conversation with our secretary today... bought a brand new fusion a couple months back and is having trouble making ends meet. but of course decided that she *needed* leather and nav and all those toys in a brand new mid-sized car... this is the kind of car that used to be considered a fancy luxury, but now people think it's what they need and deserve because they have a job. (her, not you solstice!)

just don't want you overextending on your first new car in a long while... it's no fun to get just what you want but have it taken away or not be able to afford to actually enjoy it.

Tooscoops, I get what your saying, the GT is probably more than I would need, heck so is probably the GS.  But the way it's packaged, there are a few features I like in the GS, and that red is the best colour for this car, and it's not available on the GX.  So when I go in tomorrow I will be negotiating the GS. 

Yes I have been out of the 'legit' work force for about 3 1/2 years.  But just this past spring I bought an Odyssey, did the 160k maintenance (timing belt, water pump, spark plugs), a motor mount, added a stereo/speakers, trailer hitch with brake controller.  All of this plus the flooring in the kitchen and lobby were paid for by this summer's lawn cutting. 

We always budget a $300 car payment a month.  Always have.  So the Mazda5 payment will be swapped with the Mazda6.  My decision to reenter the workforce is based on a few factors.  My daughter is 3 and is going to school next year.  She has no day care experience.  I want her to able to socialize more before going to school, so we will start day care in January when my wife goes back to work.  As for my son.  He will be around 9 months, and will do a half-week day care.  So I have arranged with my employer to have one day off during the week.  And will be home with him 3 days a week.  And my wife will do 1-2.  Depending on her schedule. 

So it's not so much a money issue.  Just a change of pace.  Different job, different car.  And like you, you get a grin with your Jeep.  So I need a grin with my car.

The topic of the thread.  Is leasing that much better than financing for tax purposes, when owning a business. And I found my answer, not really.  And I don't want my company to buy the vehicle.  It wasn't so much an affordability issue.  Thanks