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Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
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Re: AMEX Card Auto Purchase?


enharu wrote:

which Mercedes? 

I'm not a porsche guy so......lol.

 


LOL...I'm not a Mercedes guy, so I have no idea!  

 

The only reason for a Mercedes is because I could lease and insure it under my Firm, whereas I can't with a Porsche.  Probably an E class, since it'll be a business lease.

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
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Re: AMEX Card Auto Purchase?


Open123 wrote:

enharu wrote:

which Mercedes? 

I'm not a porsche guy so......lol.

 


LOL...I'm not a Mercedes guy, so I have no idea!  

 

The only reason for a Mercedes is because I could lease and insure it under my Firm, whereas I can't with a Porsche.  Probably an E class, since it'll be a business lease.


Ah I see. 

The leasee is responsible for all maintenance fees of the vehicle right? Or does Mercedes cover it?

Eitherways both cars are going to have a big fat bill for maintenance. You could earn some 5x MR with the Mercedes Plat card if you get the Mercedes too :smileyhappy:

My biggest regret with Mercedes was not buying their prepaid service plans.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
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Re: AMEX Card Auto Purchase?


enharu wrote:

The leasee is responsible for all maintenance fees of the vehicle right? Or does Mercedes cover it?

Eitherways both cars are going to have a big fat bill for maintenance. You could earn some 5x MR with the Mercedes Plat card if you get the Mercedes too :smileyhappy:

My biggest regret with Mercedes was not buying their prepaid service plans.


Leasee is responsible, but in this case, it's my Firm, which has title and also pays for the insurance.  Ordinarily, a lease is only worth it when used as a business deduction.  Downside is I've got to "own" another car for "personal" use. 

 

Being a CC enthusiasts, part of the allure for leasing the Benz would be to use the MB Platinum's 5X for maintenance and another 50K MR bonus.  :smileyvery-happy:  Also, get $1,000 off and an extra 2,000 miles on the lease.

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Rackham94
Posts: 507
Registered: ‎04-01-2013
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Re: AMEX Card Auto Purchase?


enharu wrote:

Open123 wrote:

enharu wrote:

which Mercedes? 

I'm not a porsche guy so......lol.

 


LOL...I'm not a Mercedes guy, so I have no idea!  

 

The only reason for a Mercedes is because I could lease and insure it under my Firm, whereas I can't with a Porsche.  Probably an E class, since it'll be a business lease.


Ah I see. 

The leasee is responsible for all maintenance fees of the vehicle right? Or does Mercedes cover it?

Eitherways both cars are going to have a big fat bill for maintenance. You could earn some 5x MR with the Mercedes Plat card if you get the Mercedes too :smileyhappy:

My biggest regret with Mercedes was not buying their prepaid service plans.

 

Sent you a PM :smileyvery-happy:

 

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
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Re: AMEX Card Auto Purchase?


Open123 wrote:

Leasee is responsible, but in this case, it's my Firm, which has title and also pays for the insurance.  Ordinarily, a lease is only worth it when used as a business deduction.  Downside is I've got to "own" another car for "personal" use. 

 

Being a CC enthusiasts, part of the allure for leasing the Benz would be to use the MB Platinum's 5X for maintenance and another 50K MR bonus.  :smileyvery-happy:  Also, get $1,000 off and an extra 2,000 miles on the lease.


Is the $1000 off an ongoing promotion for the MB Plat card? Or does the revolving card get that offer too?

 

I'm interested in finding out more about leasing a vehicle. Been buying them, but a lot of people have told me that leasing would have been better for me since I switch vehicles every 2-3 years. Haven't really done the Math to determine which is better.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
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Re: AMEX Card Auto Purchase?


enharu wrote:

Open123 wrote:

Leasee is responsible, but in this case, it's my Firm, which has title and also pays for the insurance.  Ordinarily, a lease is only worth it when used as a business deduction.  Downside is I've got to "own" another car for "personal" use. 

 

Being a CC enthusiasts, part of the allure for leasing the Benz would be to use the MB Platinum's 5X for maintenance and another 50K MR bonus.  :smileyvery-happy:  Also, get $1,000 off and an extra 2,000 miles on the lease.


Is the $1000 off an ongoing promotion for the MB Plat card? Or does the revolving card get that offer too?

 

I'm interested in finding out more about leasing a vehicle. Been buying them, but a lot of people have told me that leasing would have been better for me since I switch vehicles every 2-3 years. Haven't really done the Math to determine which is better.

 


The Revolver has a $500 credit.  

 

Leasing is better when rates are low, especially if you can have your business as a leasee and insured.  I lease a new car every two years.  You just have to make sure you lease a car which tends to hold it's value, otherwise you may have to make up the cost of depreciation.  

 

 

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
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Re: AMEX Card Auto Purchase?


Open123 wrote:

enharu wrote:

Open123 wrote:

Leasee is responsible, but in this case, it's my Firm, which has title and also pays for the insurance.  Ordinarily, a lease is only worth it when used as a business deduction.  Downside is I've got to "own" another car for "personal" use. 

 

Being a CC enthusiasts, part of the allure for leasing the Benz would be to use the MB Platinum's 5X for maintenance and another 50K MR bonus.  :smileyvery-happy:  Also, get $1,000 off and an extra 2,000 miles on the lease.


Is the $1000 off an ongoing promotion for the MB Plat card? Or does the revolving card get that offer too?

 

I'm interested in finding out more about leasing a vehicle. Been buying them, but a lot of people have told me that leasing would have been better for me since I switch vehicles every 2-3 years. Haven't really done the Math to determine which is better.

 


The Revolver has a $500 credit.  

 

Leasing is better when rates are low, especially if you can have your business as a leasee and insured.  I lease a new car every two years.  You just have to make sure you lease a car which tends to hold it's value, otherwise you may have to make up the cost of depreciation.  

 

 


can you explain more about this?
So I am on the hook for depreciation as well, not just monthly payments + downpayment? 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
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Re: AMEX Card Auto Purchase?

[ Edited ]

enharu wrote:

can you explain more about this?
So I am on the hook for depreciation as well, not just monthly payments + downpayment? 


When you lease a car, there are many things to negotiate.  It isn't unlike buying a car, where you still have to negotiate a purchase price option at the end of the lease agreement.  

 

For example, you still need to focus on the "purchase price," because at the end of the lease, there's always that option to buy.  The price is determined by the vehicle's residual value vs. this negotiated price.  So, if you pay too high a price and the residual value is low (from more than expected depreciation), you will be penalized (if you actually wanted to keep the car) or not have the option to purchase.

 

Whereas if you negoiated a better deal, you can purchase the car at residual value, and sell at a higher price.

 

*Edited* PS - Let's say, you paid a high price, and the car falls in value very quickly.  What happens if you total the car, and the insurance payment's "market" value is less than the value you had agreed to pay?  There's a potential gap, if a car depreciates faster than expected.  You can always buy "gap" insurance in your auto policy, but it's best to lease cars that tend to keep it's value, and negotiate the best terms and pricing.

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
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Re: AMEX Card Auto Purchase?

Ah I see. Could the residual value be so low where you could make a profit even if you were to sell the car to carmax?

I've been selling my car to used car dealers to avoid hassles :/

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
0

Re: AMEX Card Auto Purchase?


enharu wrote:

Ah I see. Could the residual value be so low where you could make a profit even if you were to sell the car to carmax?

I've been selling my car to used car dealers to avoid hassles :/ 


To Carmax, you'd have to have negotiated one heck of a deal!  It is possible, but usually for certain cars that become rare and in demand for some reason; you'll always get a higher price from private buyers.


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