4.6 • 682 Ratings
🗓️ 18 May 2024
⏱️ 7 minutes
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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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