Thinking of buying, but not for reasons most people do...

[ggsc]

Hello everyone, I'm new to the forum as I'm thinking of buying a Ridgeline RTL. I currently own an 06 Accord EX-V6, bought via the Leadership Purchase Program which is similar to a lease but it's titled in my name. My term expires in Feb 09, total miles allowed 45K, and current pymt of $309. Since I'm self-employed, getting a vehicle with a GVWR of 6,001+ lbs will qualify me for the Section 179 deduction of $25,000 on my taxes in the year I buy the vehicle, which would save me $6k to $8k in taxes, depending on my income. Problem is, the Ridgeline the only vehicle Honda makes that meets the requirements, as the Pilot or Odyssey are just under the limit. I currently get 24-25 mpg in the Accord, and realistically I'm expecting 17 - 18 mpg in a Ridgeline. I'm trying to weigh the tax savings in the year of purchase vs the higher gas cost over 3 years, as I'll only have the regular tax deduction in year 2 and 3.

I started looking at Ridgelines last month and visited my local dealer where I got the Accord. I only deal with the Sales manager since I know him and saves me a lot of time. I want to do the Leader Purchase plan again, but he told me the cash incentive was not available with the program. He said he can get me out of the Accord early without being upside down, but he quietly told me to wait until after May 1, as he heard Honda will combine the cash and low apr. Well it appears they did just that, but it's only $3k vs $4.5K.

Has anyone else looked at doing this? I thought I was going to wait until EOY and look at getting one of the new GM crossovers (Acadia, Outlook), but they're so much more expensive and their real world mpg is no better than the Ridgeline. Any thoughts?

[shovelhd]

I think no matter how you do the numbers, you'll have a hard time burning enough gas to make the fuel savings be greater than the tax deduction. So if that is the case, what is the better vehicle for you and your business? Do you need more than 5 passenger seating? If so, then you'll need the van. Do you need to carry oversized items that a van can't fit? If so, then the truck is the better choice. Comfort-wise, I'd say the van and the Ridgeline are close, with the edge to the van, as it's designed primarily as a people mover. Versatility-wise, I'd give the edge hands down to the Ridgeline.

Either way, I like the way you're thinking, and hope you make the best choice for your needs.

[ggsc]

I typically don't carry more than 3 passengers, so the Ridgeline would work for that. I like the fact that it's easy to get in and out of. I also like the reliability and resale value of Honda's which is why I'm strongly considering it. If it wasn't for the cash incentive, I wouldn't think to do it now. I would ideally like a hybrid, but hey, if the gov't will cut my tax bill by a big chunk if I buy a vehicle that burns a bit more fuel, then I won't argue that. Who knows, maybe in a few years they'll change the rules and give business owners another tax incentive to buy hybrids, which hopefully by then they'll come down in price, and I'll be ready for it!

[ggsc]

I checked with my local dealer today on the program changes for May. The Leadership Purchase Program is not available on the Ridgeline or Pilot for May. Only the $4,500 cash or $3,000 cash with 2.9%. For my purpose, I can't lease as the truck has to be titled in my name to qualify for the section 179 tax deduction. Since my vehicle is mainly a tax deduction for me, it makes sense to keep my costs as low as possible. I don't want to pay a $500/mo payment vs $308 on my Accord now, plus higher gas cost, which seem to go higher on a daily basis. The sales manager suggested I wait until June to find out what programs will be available then. I think it's makes sense for me to wait until a month or two before my current LPP contract on my 06 Accord runs out in Feb 09, unless something compelling comes along.

[jimf]

Most people are getting well over 18 mpg in a lightly loaded RL, unless it is 80% city driving. Cash incentive has been heavy on the RL since soon past its intro. The depreciation gig for honda's went out the window when they got into heavier vehicles. They're plummeting in value with gas prices like most other 20mpg autos. Resale will continue to go down if gas goes above $4.00.
As far as reliability goes you already have a Honda.

If you're mileage figures are for mostly city, you will spend about $1500 more per year for average miles and reg gas. If your lease expires in oct there will probably be some pretty good incentives on the 09's by then. No need to rush into anything unless you really need it.

Good luck
--jjf

Originally Posted by ggsc

I typically don't carry more than 3 passengers, so the Ridgeline would work for that. I like the fact that it's easy to get in and out of. I also like the reliability and resale value of Honda's which is why I'm strongly considering it. If it wasn't for the cash incentive, I wouldn't think to do it now. I would ideally like a hybrid, but hey, if the gov't will cut my tax bill by a big chunk if I buy a vehicle that burns a bit more fuel, then I won't argue that. Who knows, maybe in a few years they'll change the rules and give business owners another tax incentive to buy hybrids, which hopefully by then they'll come down in price, and I'll be ready for it!

[franc944]

I took the deduction for my business when I bought my RL.
Word of caution!

When you do get rid of the vehicle later, there is "Recapture" of the deduction.

In other words if it is not fully depreciated when you sell it any money made may be taxable.

Talk to your tax advisor about that.

I plan on keeping my RTL forever, I'm an insurance agent. Highway fuel economy is around 20 mpg + .

Buy one, you'll love it!