Quote:
Originally Posted by KRosh
All of you that say you can only write off a lease are well mistaken.
You can write off a Purchase or a Lease. You can depreciate a purchase and write off the payments or if you paid cash you can write that off also as a business expense. Then a monthly write off for mileage, gas, insurance ..etc.
To lease or to buy.
With a lease you get a brand new car with very little down payment and lower monthly payments. Basically renting the car. If you go over the miles then there are penalties, and also some leases have a disposition fee... a fee you pay at the end when you turn in the car.
You also have to pay tax on each payment on a lease
You must also be careful of excessive wear and tear and any damage to the vehicle as you will have to pay to fix that when you return the car. Make sure you have a CLOSED END Lease.
If you have good credit, then you can purchase a car, put down $2000 of your $5000 dollars that you have, and get a 60 month loan for a car that allows your payments to be around the same as the lease would be. Use the other $3000 towards your payments also. Then in the next 3 years when you make more money you can trade your car in and get something else.  |
Great points.
As an addition to this I might also say if you want a new car think about buying a car that is about 1-1.5 years old. It should have low mileage and most of the time they are in good shape. Most of the depreciation of a car comes early on. The old saying is that the value of the car drops 50% the second you drive it off the lot. So you let someone else take the big depreciation hit, you buy an extended warranty from the dealer and you have a nice car for a lot less money. This might also let you get more car for your money since you will be paying less overall.