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Hmmm this talk about cars and spending raises an interesting point I realized recently.
IF you own your own business and claim business expenses, it is SMARTER to LEASE a vehicle than buy one. This way, you only pay for the part of the car you use instead of hanging on to a quickly depreciating asset.
Advantages:
1) you can trade it in after lease expires--you will always have the latest model
2) you don't get saddled with depreciation
3) tax write off along with all other vehicle maintenance costs
4) greater license to be loose with car maintenance -- much looser than if you OWNED the vehicle.
Of course, like any principle, this has exceptions: if you are buying a classic car or a car that will be a classic and there is a good probability of asset appreciation, then buy a car.
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