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The Ramsey Show Highlights

My Accountant Is Telling Me To Lease a Car

The Ramsey Show Highlights

Ramsey Network

Self-improvement, Education, Investing, Business

4.6682 Ratings

🗓️ 18 May 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

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Transcript

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0:00.0

Brought to you by the Every Dollar app.

0:04.3

Start budgeting for free today.

0:07.1

Looking for some advice on a potential car move I got to make.

0:11.0

I've got an aged car at about 2010, and I need to either purchase a vehicle or lease one through my business,

0:18.2

which is what both my tax professional and my lawyer were like,

0:21.2

hey, that would be a great tax advantage. It's a good idea for you. What should I do?

0:25.7

Well, I mean, it comes down to, do you want to listen to your accountant and lawyer or just

0:29.7

two guys hosting a financial call-in show? Well, I know how Dave feels about leases. I mean,

0:36.3

that's kind of a given at this point,

0:38.7

but I just don't want to do stupid with some zeros on the end of it and just look at back

0:43.7

to this and go, oh, yeah, I should have leased the car or, oh, yeah, I should have bought it outright.

0:47.9

Do you have a dollar amount on the tax savings?

0:51.1

No, I don't.

0:52.3

That's one of those phrases that folks throw around.

0:55.8

Like, you shouldn't pay your house off because you can write the house off.

0:59.5

And people don't lay that up against the monthly mortgage payment and the tax and yada, yada, they pay, the interest payments they make.

1:09.5

This is one of those moments that I would wonder, and I'm making a purely math argument here,

1:16.2

and we'll talk about the psychology in a second.

1:18.0

I wonder what the actual tax savings would be versus the depreciation of the leased car.

1:24.9

Because that's what you're paying when you lease a car.

1:26.4

You're pre-paying the depreciation plus other fees. You're giving a gift to the car dealership because you are paying the

1:31.7

depreciation of the vehicle they have so they can turn around and sell it as a, as a inspected,

...

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