To lease or purchase a high-end car?

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To lease or purchase a high-end car?

Postby rohnin » Sun Dec 22, 2013 10:15 pm

I have an S-Corp that I can lease a car under for tax purposes. I'm interested in a car that is worth about $170k, and I would want to keep it forever. Would I save more by getting a low interest rate on purchasing it and calculating depreciation, or taking the business expense tax deduction through a lease and then buying it out at the end?

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Postby PhoenixDown » Sun Dec 22, 2013 10:55 pm

Most likely the later option... all told you will pay more money but you will recoup that back in taxes saved. Best to talk to your account about this.

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Postby Gb24 » Thu Dec 26, 2013 8:56 am

What type of car?

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Postby djrez4 » Thu Dec 26, 2013 10:32 am

Need more info -

APR for purchase? Length of lease and payment? Buyout amount for lease?
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Postby JayS10 » Mon Dec 30, 2013 7:52 am

Depends honestly. If you're the type to switch out cars every 2-3 years then a lease might not be a bad thing depending on how much they want down.

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Postby chas0039 » Sun Jan 05, 2014 7:43 pm

There is a not too complex financial model to make the analysis. The biggest factor is the value at the end of the lease.

Check Google for buy or lease or similar terms.

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