Weekly Financial Tip – Saturday July 22, 2017

Lease a Car vs. Buy a Car: What makes more economic and financial sense for business owners?

Should I buy or lease a vehicle for business use?

So, my car lease expires this December 2017, I started today to slowly look at the available inventory (this was the first time I ever leased a vehicle).

The questions most business owners have are:

  1. Do I buy or lease?
  2. Do I buy brand new or certified/pre-owned?
  3. Do I pay Cash or Finance?

Let’s address Question #1: Most business owners believe leasing is best because one can write off the monthly lease payment as a business expense.

I have news for you: Buying makes more financial/economic sense than leasing! (I know, this is contrary to what you have been told before. Just run the numbers: scenario 1 Lease versus scenario 2 Buy.

For more information or if you would like to chat about this topic, contact me at mlopez@bymarialopez.com

 

 

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