Entrepreneurship & Small Business

Buy or lease car mainly for business?

  • Last Updated:
  • Jul 9th, 2016 10:27 am
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[OP]
Member
Apr 26, 2010
234 posts
24 upvotes

Buy or lease car mainly for business?

Hey guys!

I'm about to purchase or lease a 2016 Mazda CX-5 or Subaru Forester.


I'm having trouble figuring if I should lease or buy the car up-front.

I have enough savings to buy the car cash and I wouldn't have any troubles leasing with my credit score.

75% of the car usage would be for my business (sole proprietorship).
I tend to keep my cars ~5 years.

Thanks!
5 replies
Sr. Member
May 12, 2014
787 posts
410 upvotes
Markham, ON
Lease so you can write off the payments as opposed to depreciating an asset. Most entrepreneurs I know lease for business. I realize this is an over simplification. Best to discuss with your accountant.
Member
Mar 12, 2004
214 posts
42 upvotes
Kitchener
You might consider the mileage question. If you need to pre-purchase substantial mileage it may make purchase and depreciate a better option. Monthly carrying costs on a high mileage lease may be prohibitive but this is very dependant on your situation. In a similar situation myself, I choose to purchase.
[OP]
Member
Apr 26, 2010
234 posts
24 upvotes
cobrajett wrote:
Jul 8th, 2016 11:15 pm
You might consider the mileage question. If you need to pre-purchase substantial mileage it may make purchase and depreciate a better option. Monthly carrying costs on a high mileage lease may be prohibitive but this is very dependant on your situation. In a similar situation myself, I choose to purchase.
I expect to drive ~15,000 km / year.
Deal Fanatic
User avatar
Jan 27, 2007
5035 posts
917 upvotes
Peterborough
Lease is good for a write off.

Dont put anything down.

Keep only for 3 years or length of warranty.

Dont go over km allowance
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Member
Mar 12, 2004
214 posts
42 upvotes
Kitchener
Malkavian wrote:
Jul 9th, 2016 9:01 am
I expect to drive ~15,000 km / year.
In that case I would likely lease.

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