Say BYE BYE to our resale!

[flynz4]

Originally posted by cwerdna@Dec 22 2005, 03:40 AM
Cars lose most of their value in the first 2-3 years.  Remaxmanager should really be looking into leasing if he's keeping cars for that short a period of time.

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The difference between leasing vs buying is really only a difference in how the car is financed. Someone who leases generally takes just as large of a depreciation hit as someone who buys. The person leasing the car will have smaller payments each month, but at the end of the lease period... has no residual equity in the car either.

There can be minor variations depending on the terms of:
a - lease
B - traditional car loan
c - cash payment

but for the most part... the depreciation will be nearly constant in all 3 cases.

You are 100% correct... Cars take a majority of their depreciation during the early days of ownership. Selling a car early does not make a lot of financial sense for most people.

In my case... I am taking option C above.

/Jim

[IMHYBRID]

why wouldnt the tax credit count on the sale of a used hybrid? has anyone talked to a tax person?

[kDB]

Originally posted by IMHYBRID@Dec 22 2005, 07:32 AM
why wouldnt the tax credit count on the sale of a used hybrid? has anyone talked to a tax person?

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it's part of the law, one credit per family or car, if it's used chances are there was a credit for it already. just keeps the government from paying out too much.

[Kiloran]

Originally posted by kDB@Dec 22 2005, 09:27 AM
it's part of the law, one credit per family or car, if it's used chances are there was a credit for it already.  just keeps the government from paying out too much.

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Wrong and right.

The credit does not apply to used hybrid vehicles. (Yes, the law is written that way. Seen it.)

You can, however, take the credit for as many new qualified hybrid vehicles as you purchase.
Note: The credit(s) will not lower your tax liability below your Alternate Minimum Tax (AMT) which is at least $0.

"Unused" portions of the credit will not be refunded or carried over to the following year.