$3,000 Car Payment

[zhandfull]

Is the squeeze worth the juice?

One person purchased a 2023 Tahoe with $2,550 monthly payments on an 84-month term!
Another person bought a 2023 Sierra 2500 Denali with $3,000 monthly payments, locked in a 96-month term!

"Garbage Deals": Dealership Puts Customers In Cars With $3,000 Monthly Payments | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[RitcheyRch]

That's freaking insane.

 

[zhandfull]

That's freaking insane.

And were not talking supercars either. lol

 

[lbhsbz]

Is the squeeze worth the juice?

One person purchased a 2023 Tahoe with $2,550 monthly payments on an 84-month term!
Another person bought a 2023 Sierra 2500 Denali with $3,000 monthly payments, locked in a 96-month term!

"Garbage Deals": Dealership Puts Customers In Cars With $3,000 Monthly Payments | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

That's 214K and 288K (respectively)

nuts

 

[TonyFanelli]

$288,000 for a Denali...no thanks

 

[SJP]

What will the Denali be worth in 8 years?

 

[boatpi]

MORE down payment. Some look at using ca$h like this, mostly businesses. If you use 50G in cash down, and get say u get 5% loan, how much could you make with that cash if used in your business? We have the cash, yet CPA says this;


Seems odd, but when we just purchased the BMW X5E, our CPA said DO not pay cash, get a loan for part of it you need the write off. And we are getting hammered in income taxes, lie 36%. So we do what they say.

 

[badgas]

Not too shocking !

The average new car payment in the US is $726 also BANANAS !

 

[lbhsbz]

MORE down payment. Some look at using ca$h like this, mostly businesses. If you use 50G in cash down, and get say u get 5% loan, how much could you make with that cash if used in your business? We have the cash, yet CPA says this;


Seems odd, but when we just purchased the BMW X5E, our CPA said DO not pay cash, get a loan for part of it you need the write off. And we are getting hammered in income taxes, lie 36%. So we do what they say.

you poor thing

 

[LazyLavey]

Maybe they have no intention of making a payment......

A poof.... Just like that......the car is gone

 

[WYRD]

What will the Denali be worth in 8 years?

$15k

 

[HNL2LHC]

Payments….. Must not be RDP members.

 

[Sleek-Jet]

Uhhh... Bon jour...

 

[WYRD]

MORE down payment. Some look at using ca$h like this, mostly businesses. If you use 50G in cash down, and get say u get 5% loan, how much could you make with that cash if used in your business? We have the cash, yet CPA says this;


Seems odd, but when we just purchased the BMW X5E, our CPA said DO not pay cash, get a loan for part of it you need the write off. And we are getting hammered in income taxes, lie 36%. So we do what they say.

Why the hell wouldn't you pay cash for it and take the 80% bonus depreciation credit? Seems like your CPA doesn't know what the hell he's talking about

 

[hallett21]

If you own a business and have legitimate cash flow that exceeds your “expenses” then this makes sense all day.

So….. who’s lying lol.

 

[Ace in the Hole]

Is the squeeze worth the juice?

One person purchased a 2023 Tahoe with $2,550 monthly payments on an 84-month term!
Another person bought a 2023 Sierra 2500 Denali with $3,000 monthly payments, locked in a 96-month term!

"Garbage Deals": Dealership Puts Customers In Cars With $3,000 Monthly Payments | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Just did some blackout math on the Tahoe.... If they "sold it" for $80k, zero down.... that is nearly 35% interest.... No one forced them to buy it, but no one signing that has any lick of financial literacy, and it's 100% going to get repo'd at some point.

 

[hallett21]

I didn't know you could write off auto loan interest ?

I guess as if it's all lumped into a business expense then you could ? But then again you are still paying the interest so you are just buying the exemption.

Sending a bank $10,000 K to avoid giving Uncle Sam $3600 ?

This is why I'm not a CPA and pay one because I get too confused over all these Shell games.

Typically you’re sending the bank 10k to avoid paying 120k this year or 50-60k for the next few years.

At this point it pays to have a CPA who knows their shit.

 

[badgas]

Why the hell wouldn't you pay cash for it and take the 80% bonus depreciation credit? Seems like your CPA doesn't know what the hell he's talking about

This is what my CPA recommends if you have a big liability and are looking for a new car. Go get 6,000LB vehicle : )

I never have those liabilities but I have buddies who do

 

[Hypnautic]

Those posts and vids are click bait.
Fake-
Even the car industry has predatory lending guidelines.

 

[zhandfull]

Just did some blackout math on the Tahoe.... If they "sold it" for $80k, zero down.... that is nearly 35% interest.... No one forced them to buy it, but no one signing that has any lick of financial literacy, and it's 100% going to get repo'd at some point.

Probably rolled some negative equity into the deal.

 

[badgas]

Typically you’re sending the bank 10k to avoid paying 120k this year or 50-60k for the next few years.

At this point it pays to have a CPA who knows their shit.

You might have to explain this to the guys like me with the dunce cap on.

 

[BabyRay]

Maybe they have no intention of making a payment......

A poof.... Just like that......the car is gone

When I was in my early 20’s (I’m 70 now), I knew two guys who bought new Camaros at the same time. Within a year, both cars were “stolen” and went off a cliff, sans driver, and were paid off by their insurance companies. I’m sure they had fun in the meantime.

 

[TonyFanelli]

What will the Denali be worth in 8 years?

$5k if it's still running

 

[hallett21]

You might have to explain this to the guys like me with the dunce cap on.

Im not a CPA lol. But you can depreciate the vehicle over one year or I believe 5-7? Either way you’d be avoiding income tax.

When the tax bill exceeds the truck/escalade/gwagon payment etc you start making adjustments lol.


That’s not to say idiots make bad ideas.

 

[dribble]

For 3K a month it needs to come with a pool, a 4 car garage, and a shop.

 

[Mack]

24 years ago I spent 4 months in Argentina and got to experience where we are going today as a country. Majority of the vehicles then had to be over 35 years old, nothing new because of a 100% tax on the new purchase price of anything new. Nobody bought new then, will not be long till very few buys new in America. Taxis were the only ones that ran newer fiat cars. South of Buenos Aires out in the country older cars from Germany like the old tv show Hogan Hero’s still used as daily drivers in 1999

 

[NicPaus]

Not too shocking !

The average new car payment in the US is $726 also BANANAS !

My last 3 work trucks were $800 a month. Had 3 at once. Worked every other Sunday until they were paid off within 2-3 years and they were 60 month terms.

Trying to buy the same now the payment is $1500 a month. Would like a walk in body on a new truck but it's 94k before fees. Some of these guys running around my town have fleets of them new.

 

[76sanger]

How does that pencil out? It doesn't!

 

[Ultra...Good]

You might have to explain this to the guys like me with the dunce cap on.

easiest way to look at it is like this; money, or working capital is to the business as a hammer and saw is to a carpenter.

for a business to retain some capital for operations and unforseen costs it can can less expensive to carry a long note on a vehicle and keep smaller amounts in revolving CD's or such to avoid short term loans.

just a complicated way to simply save money. some call it a loophole.

 

[zhandfull]

Those posts and vids are click bait.
Fake-
Even the car industry has predatory lending guidelines.

I hope your right. But I seriously have my doubts on the predatory lending guidelines enforcement.

 

[badgas]

Im not a CPA lol. But you can depreciate the vehicle over one year or I believe 5-7? Either way you’d be avoiding income tax.

When the tax bill exceeds the truck/escalade/gwagon payment etc you start making adjustments lol.


That’s not to say idiots make bad ideas.

I know if it is over 6,000 LBs you can write off 80% of it in one year. it used to be 100% in 2022

 

[hallett21]

I know if it is over 6,000 LBs you can write off 80% of it in one year. it used to be 100% in 2022

I think that’s the majority of what pushes these vehicles.

 

[badgas]

My last 3 work trucks were $800 a month. Had 3 at once. Worked every other Sunday until they were paid off within 2-3 years and they were 60 month terms.

Trying to buy the same now the payment is $1500 a month. Would like a walk in body on a new truck but it's 94k before fees. Some of these guys running around my town have fleets of them new.

And you are using your trucks.

The majority of car payments out there are " Hey LAM "

 

[Big B Hova]

What will the Denali be worth in 8 years?

My 2018 denali is work 25k per kbb lol

 

[hallett21]

And you are using your trucks.

The majority of car payments out there are " Hey LAM "

G wagons are the same GVW as “trucks” lol

 

[WYRD]

I know if it is over 6,000 LBs you can write off 80% of it in one year. it used to be 100% in 2022

There's a bill on the books now that might revert back to 100% for 2023 it's going to pass you know fingers crossed hope it does

 

[zhandfull]

How does that pencil out? It doesn't!

While it would seem impossible. Let’s assume 80k purchase price on Tahoe. 10k extended warranty. 20k in negative equity from the car they bought two years ago. Tax and licensing another 10k plus and 20% interest rate. Why 20%, because everyone including the bank knows this deal is going to fail sooner or later.

The Denali is probably 100k purchase with all the same baggage as above.

 

[sonicss31]

These threads are quite informative and the terms are insane but in the end, I personally could give a rats ass what some people agree to and how they spend there money/paycheck.

 

[Orange Juice]

If I had a stock that made me a million in a short period of time, I might splurge, and buy a 200k vehicle… it’s call dreaming.

 

[zhandfull]

While it would seem impossible. Let’s assume 80k purchase price on Tahoe. 10k extended warranty. 20k in negative equity from the car they bought two years ago. Tax and licensing another 10k plus and 20% interest rate. Why 20%, because everyone including the bank knows this deal is going to fail sooner or later.

The Denali is probably 100k purchase with all the same baggage as above.

I forgot about the dealer added lift kit and wheels. $$$$$

 

[boatpi]

Shit, just get this for the car collection. Think of what you would save (13-14%) in Cali income tax.

RDP crash pad.

https://www.redfin.com/NV/Henderson/720-Dragon-Ridge-Dr-89012/home/33537972

 

[boatpi]

Don't talk stocks, u know the story, I thought wifey had purchased 1,000 shares of Avis-Budget at $11.......... That would have been a 4,2 MIL day on a 11K investment. I love her though 100%!

 

[Done-it-again]

Why the hell wouldn't you pay cash for it and take the 80% bonus depreciation credit? Seems like your CPA doesn't know what the hell he's talking about

Why take the money out of the bank when you still can take the bonus credit and write off the interest and spread the money out 5 yrs vs 1x

Our CPA said the same, no out of pocket money and buy a 6,000 car.

 

[C_J_J_C]

What other people do is not my concern but I have definitely learned from the past 5 years. I invest exclusively in used trucks, Magic deck boats, and Bitcoin. They only go up, up, up.

FYI my investment youtube series is only 39.99 if anyone is interested. I call it Covid Positive Investments.

 

[Done-it-again]

I know if it is over 6,000 LBs you can write off 80% of it in one year. it used to be 100% in 2022

It’s 60% this year and 40% next and 20% the year after till it gets to 0% bonus depreciation.

 

[Done-it-again]

There's a bill on the books now that might revert back to 100% for 2023 it's going to pass you know fingers crossed hope it does

Seriously? I thought it was only the R&D credit being turned back to 100% in the same year that Trump put in place

I’ll have to look in to it.

 

[King295]

Seriously? I thought it was only the R&D credit being turned back to 100% in the same year that Trump put in place

I’ll have to look in to it.

If it passes, bonus depreciation would be back to 100% along with domestic R&D credits, foreign R&D is still scoped out and amortized over 15 years.

 

[Sharky]

What will the Denali be worth in 8 years?

Scrap metal

 

[Done-it-again]

If it passes, bonus depreciation would be back to 100% along with domestic R&D credits, foreign R&D is still scoped out and amortized over 15 years.

That’s good to hear.

The R&D for 23’ was a kick in the pants. We started it 3-4 yrs ago so we only knew the 100% in the same year.

Had my R&D tax meeting this morning. The bill is not scheduled to be heard. Will see what happens.

 

[brgrcru]

I never had a house payment that much.