Obviously, this varies given the situation. Who says you have to take out the whole cost of a car in one year? With the lease there is typically money down and monthly payments which is money that could go toward the new car. If one lump sum puts you in the next tax bracket, do it over multiple years. If leasing and buying, over the long haul, cost the same, there won't be much difference in taxes really. And I doubt that most people are paying the same by leasing. You are typically paying a premium for the convenience.inbox788 wrote: ↑Tue Sep 18, 2018 1:10 pmAre you selling stocks? How long do you plan to keep your cars? How many miles do you drive a year?
Is this a math or finance question? Does paying the lump sum capital gains tax all in one year increase the total taxes paid? Does it move OP up a tax bracket? If you don't have to pay the tax by spread things out or if your heirs have a step up basis, then there may be a benefit to delaying payment.
A loan costs interest, but there's a time value to money, so if you can get a free subsided car loan (0% or very low rate, less than 2%) that doesn't increase the cost of the deal, that may be less costly than paying cash. Similar with leases, but additional lease costs/benefits.
Anyway, the math doesn't change whether you're in retirement or not.
New Car: Ever make sense to lease?
Personally, I have to wrap my head around taxes in retirement as most of my money is in tax deferred accounts. I hope I don't turn into a miser adding 22% (or whatever it is) on to everything I buy mentally due to the taxes incurred taking money out of my retirement accounts.