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Anyone Have A Company Car?

by maxrezn
6 replies
With my business growing weekly, I find myself being embarrassed parking my car, a Mitsubishi Galant, at my usual meeting location (Coffee shop at a 5 star hotel) among my clients' S550s and BMWs. I really would like to purchase a Porsche 911 (2000-2002 model) but I can't decide if it would make more sense to lease it under the business, or buy it with cash under my name.

Has anyone had experience leasing a company car for tax benefits, if so, what's your opinion on the matter?
#car #company
  • Profile picture of the author kebertt
    If you can write it off, why wouldn't you
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  • Profile picture of the author Ninja Ana
    Go.. lease it under your business for tax benefits.
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  • Profile picture of the author luke1213
    At least you don't have to ride a bicycle or take the bus...

    You can get any car and have it as a tax right off for your business whether it's in your business name or not.

    One thing to consider:
    When purchasing equipment for a business, it is wise to make sure you are incorporated. Let's say you purchased the car for 50k. Your company goes under. If you signed for the car personally without being incorporated, the debt falls directly on you. If you are incorporated and the car is in the companies name, you won't be pursued by creditors since you will be protected by the corporate shield. This doesn't work if your companies business structure is an individual, sole proprietor or partnership.

    Anytime you go into some sort of contract agreement if it at all possible, even if its for $500 always sign on behalf of the company. Example: John Doe, President of XXXX Inc. Some will ask for a guarantor. Sign on behalf of your corporation as a guarantor.
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  • Profile picture of the author vndnbrgj
    Don't lease a car. I don't care if you can write it off.
    Leases are terrible. Pay cash for it.
    Accumulate the cash in your business account and have the business purchase it.

    If you don't have the cash now, you don't need it yet.
    I understand you may not like the way you may be perceived. Just tell them you believe in only buying something you can pay cash for, and that you are currently stockpiling the cash.
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  • Profile picture of the author John Williamson
    Even if you write something off, it's not like you're getting it for free. You're still paying for about 2/3 of the total cost. Just get something like an older model Mercedes or BMW (04, 05, 06) which are fairly inexpensive.
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    • Profile picture of the author umc
      Originally Posted by John Williamson View Post

      Even if you write something off, it's not like you're getting it for free. You're still paying for about 2/3 of the total cost. Just get something like an older model Mercedes or BMW (04, 05, 06) which are fairly inexpensive.
      This.

      It isn't like you suddenly get a free car, you still have to pay for it, and what you usually save is your tax basis on the amount paid.

      As a guy that drives beaters, I get your desire to fit in to certain perceptions, but when people start paying for my cars they can dictate what I drive. Otherwise they can just be impressed with what I actually bring to the table, not superficial fluff.
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