Hummer H2 Or Porsche Cayenne

[DCfromCapeCod]

Both Cayennes and Hummer are currently being heavily discounted...there is no waiting list for either.

I am currently looking at a Cayenne Turbo....the appearance is mitigated by the 450+ HP.

[MAC]

DC, at least Hummer had a 8-10 months run without discount.

If I were to do it again, knowing what I know about Hummer, I'd go with the Hummer without any hesitation. It is by far a better choice by 1,000%. My major problem now is that I am so used to the huge Hummer size, anything smaller just doesn't satisfy me anymore. MB S500 or BMW7 were big sedans but now they are no different than a Honda to me, in fact all cars are just cars now, also both are too common around here. (BMW7 does have very nice new gadgets.) Porsche Cayenne S will do just fine as a 2nd vehicle, price right, I don't need to spend serious money for a turbo Cayenne. I'll wait for 1 year new/old used Cayenne S, $40K?

[Steve R]

Now don't read into this too far....but I'm surprised to hear that MAC isn't thrilled with the Cayenne. I would have thought it a better suited vehicle for his needs, purposes and uses?

[DCfromCapeCod]

Given the current tax laws, the $100K Cayenne Turbo will cost me about $57K. Next year that might not be true.

I'm not knocking the Hummer, I still have a pending order for one. I am merely testing the waters.....buying the Cayenne will let me keep over $20K that I otherwise would be sending to the IRS.

Great thing about this country...you can buy whatever makes you grin.

[Steve R]

A little something we all tend to overlook:

Whatever massive amount we depreciate and thusly save on taxes today....will have to be accounted for when we sell these things and they haven't devaluated to that extent later.

Essentially we have to re-capture the write-off. In the end...we depreciate whatever the actual devaluation is, the huge tax write-off is only an up-front candy piece intended to make you feel wealthier, spend more in an effort to increase marginal demand and create warm fuzzy thoughts about the originator of such legislation. Don't believe the hype...we basically just get that tax-savings on loan.

Damn you for making me use my brain and recalling some economics from my college days!!

There are a LOT of great values on used vehicles in great shape for under $15,000. They won't turn eyes, impress anyone or have that great new smell with a big warranty. So if you have the bucks to go beyond that simple $15K window....you best have the money not to really care about $20K here and there.

Now, if you'll excuse me....I'd like to return to being comfortably numb about the real value of buying such an extravagant toy.

[MAC]

Nothing personal, DC, but that sounds a bit far fetched to me. It takes you 1 year to think about $50K Hummer and search for discount, now you gonna buy a $100K Cayenne just like that? somehow the math and logic just don't add up, very fuzzy indeed. Not just $50K or $100K or your tax numbers, the whole picture is out of focus.

If money does grow on your tree, then you could've bought a Hummer last year, play with it get the tax credit, dump it and buy a new Cayenne, play with it take the tax credit and move on to next new love. You need to make very good money to be able to use tax credit that size, and it takes some guts and risk to use the full credit, plus tax credit is much over-rated. Anyway, at least you have a good head to pick a nice Porsche SUV.

[DCfromCapeCod]

Correct....but I would rather have the $43,000 today.

When I sell it at some time in the future, I will have the selling price come to me as income. This can be mitigated by being in a lower tax bracket in the future and/or it can be offset by purchasing a new vehicle.

The bottom line is that the savings is in today's dollars...I literally transfer the money from my tax account into my own account. This is far better than a much lesser amount in the future...especially when I can defer taxes on this forever....or until they are a fraction of the $43K I am pocketing today.

Obviously it is far more prudent to save the money altogether.....but if the future is planned for than there is nothing wrong with living a little today.

You can't take it with you.

Mac - Not sure what is out-of-focus for you...I didn't spend a year looking for a Hummer...I recall starting a search somewhere around June. I have owned Porsches for 15 years so I am always looking at their products. I said I was merely "testing the waters"...I did not say I was buying one tomorrow.

The tax law changed in late May so all this is new for everyone - 3 months ago the limit was $24K.

My income is more than enough to take advantage of this credit and I see little or no risk to do so. The tax credit is a HUGE loophole...if anything, I think it is under-rated.

[Steve R]

I hear ya Alec....but let's not bang our drum too loud: I think I hear the lone-dissenter coming!!!

Say Alec...I hear the LR boys call you the conquerer of the Holy Cross....care to elaborate on that?

[DCfromCapeCod]

Looking at my registration date shows I started looking on 5/26.....just about when the tax law changed.