Assuming buying outright is not the option, will you finance or lease your next car? What are the t ...
ff0098765 發表於 2010-3-10 16:34
The salesman tend to talk you into leasing,
after 2 years, you get no equity in that car at all.
However, for small business, it is totally different,
you pay payment a monthly at a time, no down payment
required , and everything is taxable. most people do not
bother to do any maintenance other than fuel, then return
the car when the lease expires.
It is not worth to lease if you cannot write off all the expenses.
Usually the interest rate is lower for leasing, but you get nothing
after the lease expire.
Financing interest is slightly higher but your car will be paid for.
Most people will not consider buying out the leased car because
they will be paying the full used car price, usually 60% of the
current price, after they paid for 3 years
Depends, that is how they usually sell the used cars for,
then the mileage, damage and collision records.
Usually the leased car owners do not take good care of the cars,
since they are not going to keep them.
36 months lease you have already paid 75% of the car but they
do not give you any equity for buying out, that is the way leasing work.
Tax benefit: 100% deductable,
arrange the monthly payment from the company account,
use the company credit for all the gas/maintenance/car wash expenses.
The mileage allowed is usually 20,000 KM/year
I returned 4 cars after lease expire, they usually withhold a month payment
in case of major damage, minor scratch, don't bother
Well, usually they ask you for the first and last payment
when you check out the car, so if not damage on the car,
they send you a cheque in mail.
They ask a void cheque that they can debit from the account,
you can set up a personal chequing account just for that purpose,
and declare your tax return.
Opening a business is so easy, and since the government do not
quarantee success, you can always lose money and offset your
high employment income.