Just as a bit of advice to everyone on here, don't bankrupt yourself trying to get a Bronco

[Bradley Thornton]

I did the Dave Ramsey thing and paid off my house yesterday. ???

May I ask your age. Congrats regardless. My goal on this is 45-50 years old.

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[High Proof]

Lets say I make 205K a year and can write off the Bronco on my taxes. (I am married)
If I buy a 60k Bronco and write it off I went from a 35% Bracket to a 24% tax bracket.

So I would save $22,550 that I would have given the government now I will just do the simple x2 being instead of it going out I added it to my pocket. Thats $45,100. Now I paid $14,900 for that Bronco.

Might want to consider that you can only section 179 the percentage used for the business. I'd have to look it up but I think there are yearly max depreciation amounts as well.

Not sure I understand the x2 bit. If you have the money sitting in the bank to pay the tax and then you don't have to pay the tax. You still only have the original money in the bank. Am I missing something?

But I like the creative attempt!

 

[Bradley Thornton]

Might want to consider that you can only section 179 the percentage used for the business. I'd have to look it up but I think there are yearly max depreciation amounts as well.

Not sure I understand the x2 bit. If you have the money sitting in the bank to pay the tax and then you don't have to pay the tax. You still only have the original money in the bank. Am I missing something?

But I like the creative attempt!

The norm is actually x3 money you lost vs money you had vs money you could have made. I did x2 and took the invest out being you was already going to spend it. If you don't get it I really don't know how better to explain it. But most money people live by it.

I actually do mileage so not sure on that one. But I will tell you I'm always at the top of my tax bracket and not at the bottom of the one above me.

 

[Squatch]

Might want to consider that you can only section 179 the percentage used for the business. I'd have to look it up but I think there are yearly max depreciation amounts as well.

Not sure I understand the x2 bit. If you have the money sitting in the bank to pay the tax and then you don't have to pay the tax. You still only have the original money in the bank. Am I missing something?

But I like the creative attempt!

Yeah, still out $60k but he's not out $82,550, right?

 

[indio22]

This has now become a debate over making money vs living life to the fullest. I live in the grey area.

Yeah I would say prepare for the future in terms of finances, but retirement is overate. Sucks if you die before retirement or have some health issue and waited too long to enjoy your time. Most people can't handle legit thinking about their own mortality, make ups stories about how they are going to live forever, and make decisions without accounting for the reality of the situation.

For me and family, travelling around the world and exciting active adventure has been a priority. While reasonably young and in top shape. Screw waiting until 65, maybe hobbling on some trail or huffing and puffing up some mountain. Do all that stuff now - when you are alive and younger.

I would also say though - some people think "living life to the fullest" is buying stuff. Bad move. Living a non-materialistic lifestyle is the way to go. Everything you own, in some way owns you. And that sucks.

 

[TXJeepScientist]

May I ask your age. Congrats regardless. My goal on this is 45-50 years old.

You can ask!





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[ioh]

For those playing the interest rate differences, just a friendly reminder to include transaction costs (eg. origination fee for a loan) into their calculations.

OP, appreciate your good intentions.

 

[XirallicBolts]

I'm still trying to figure out how we're going to go about financing the car. I'll be doing a down payment and she'll finance the rest.

I'm debt-free and all our property (house, two cars) are in my name.
She has ~15k in student loans and no property.
Separate bank accounts, both have good credit and steady jobs.

I'm *thinking* the best would be if I do the down payment then co-sign on her loan. The other option would be to pay her student loans off but she still wouldn't have any collateral.

I'll have to talk to the dealer and our banks come purchase time, see who can give the best rate at what method. I could just buy the entire car outright for her, but she wants to contribute and I don't want to buy a 50k car I'll only get to drive a handful of times every year.

 

[MJJ]

I always find these conversations interesting. They always seem to focus on expenses and how to save more.

I have always focused first on how can I make more money.

That has worked in my case.

 

[TXJeepScientist]

May I ask your age. Congrats regardless. My goal on this is 45-50 years old.

One of the things that helped was at the early stage of my mortgage, I switched from monthly payments to biweekly payments. I was on track to knock off over 7 years over a 30 yr loan. Then I added another $90.00 to each biweekly pmt which knocked another 1.5 years off the back end.

 

[High Proof]

Yeah, still out $60k but he's not out $82,550, right?

Only if you can write it off 100% in the first year. The IRS may not like that idea.

But still, point taken. If you can deduct any of it you reduce the out of pocket cost. Wonder if I need one for rum promotions.....

 

[The Driving Viking]

I hear ya, I have a 2015 Challenger Scat Pack. My current daily driver is a loaded up Ford Edge, which I'm planning to trade for Bronco! For vehicle lovers, the cost of owning ones that we love is worth it! My husband and I work hard and are good at pay off loans early. You would not catch me ever owning something practical and boring like a corolla or minivan!

I can see a lot of people either getting themselves in financial trouble trying to purchase the Bronco and I can also see many people not end up getting approved for a lone.

Unfortunately thats the reality of purchasing vehicles. Makes me wonder out of all the Reservations how many people won't even make the cut and what the percentage of Reservations actually turning into purchases will be??

 

[Squatch]

Only if you can write it off 100% in the first year. The IRS may not like that idea.

But still, point taken. If you can deduct any of it you reduce the out of pocket cost. Wonder if I need one for rum promotions.....

I would buy rum out of the back of a Bronco; just sayin'.

 

[High Proof]

The norm is actually x3 money you lost vs money you had vs money you could have made. I did x2 and took the invest out being you was already going to spend it. If you don't get it I really don't know how better to explain it. But most money people live by it.

I actually do mileage so not sure on that one. But I will tell you I'm always at the top of my tax bracket and not at the bottom of the one above me.

I understand what you are saying. I just disagree. No biggie though. Always a good idea to write off what you can! We can agree on that.

 

[Bradley Thornton]

I understand what you are saying. I just disagree. No biggie though. Always a good idea to write off what you can! We can agree on that.

Funny thing is I use mileage. I was just giving an example.

Anytime 2 people can agree to disagree its a good day.

Personally I think the Bronco is a bad buy. Yes, I am buying one but this is for me and me being selfish. I told my wife many years back when this comes out I would buy it no matter what. To be fair I can afford it with no problems but just because you can don't mean you should.

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