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I have leased a GM truck or SUV for my mainstream company for the past 3 vehicles and I like. You can deduct the full amount and don't have to worry about depreciating it over time tax wise.
A lease payment is based on the residual (amount the vehicle will be worth at the end of the lease). The amount you lease for is the NEW price minus the RESIDUAL price. Sometimes GM will run special lease deals to up quota by raising the residual. I leased a $46,000 Tahoe for $700 a month for 3 years. That's gonna cost $8400 a year or $25,200 total.
So GM thinks that the Tahoe will be worth 21,000 after 3 years and 45,000 miles.
So I turn it in or buy it for that.
The first lease I did with them was on a S-10 extended cab pickup back in 95 or so. $150 bucks a month for 3 years. Couldn't beat that.
My personal vehicle now I did not lease because I plan to keep it a long while. (50th Anniversary Z06 Vette) GM is giving away money for free (0%) on everything for 5 years. That's and industry first. Better to take that deal even if you had all of the money. Take your $50,000 and invest it in a CD or something safe.
Cheers,
BV
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