Entrepreneurship & Small Business

Vehicle leasing for small business

  • Last Updated:
  • Nov 14th, 2017 1:43 pm
Newbie
User avatar
Nov 18, 2012
9 posts
3 upvotes
Vancouver
TheSpandexSuplex wrote:
Sep 1st, 2017 3:27 pm
Valid points, indeed. It's a bit of a catch 22 with my situation in that I will be opening a dental specialist surgery. While I would like a nice car (because who doesn't and I think I deserve it, without a need for an explanation) I also believe that my referring dentists would expect no less. It would give the wrong image to show up in an econo box, IMO.

But then you have the public who are also my patients. While on the one hand, I don't want to hand someone a bill for $10k while I run off to my Porsche, I also think that my patients would be put off, if I drove the econo box. It would imply a lack of success and therefore, skill. I would assume a successful surgeon is a good surgeon. I could also be wrong, lol

Either way, Im not looking to buy a Ferrari or such. Something to treat myself, and have fun. Id much rather give my kids $50k each for a down payment on a house, education, wedding, etc. vs dropping that coin on a ultra high end vehicle. I'd feel too guilty, lol
Lol, yeah - it is definitely a catch 22.... funny things work. You make the money and you want to spend it and treat yourself but you also don't want to show it off in a way that might off put people. I read an article about a lawyer who had chosen to purchase a Tesla Model 3 versus a model S for that reason... to find that "middle" point as she was a Lawyer but advocated for mainly Not for profit groups.
Deal Expert
Aug 2, 2004
25360 posts
2741 upvotes
East Gwillimbury
TheSpandexSuplex wrote:
Sep 1st, 2017 3:27 pm
Id much rather give my kids $50k each for a down payment on a house, education, wedding, etc. vs dropping that coin on a ultra high end vehicle. I'd feel too guilty, lol
I'm in the same boat. I am customer facing and I lease. I get a new car every 4 years and I could get the Benz, BMW etc. But I chose to drive something a lot more modest. My price range is anything under $35,000, I rather give all the disposable cash to my kids.

Drive something too expensive and customers think your making a fortune from them, drive a Hyundai and they question your ability in your chosen profession.
Newbie
Oct 1, 2011
75 posts
10 upvotes
Georgetown
We're in the market for a new vehicle and I would like to get something for business use, but also a larger SUV or van that can double as a family vehicle when we visit family who live 3hrs away or cottage trips.
Now I realize this is also a bit of a catch 22 as well, where the more family trips we make, that will be personal use and eat into potential deductions - so my question was - are there any tips in maximizing business use mileage?

Our business has a primary location and we also have to drive to clients houses for service and deliveries. From what I've read and understand, commuting to and from work is personal use, but going from work to a clients and then from the clients to your home, those trips would be considered business use? I was thinking of using the vehicle for all direct visits to clients and back as well as using it on days when seeing clients before or after going to our physical office location would make sense. On days traveling just to the office and back (personal use) we'd use our old commuter vehicle. Obviously distances will come into play, but does this make sense?

I'm also wondering, to offset personal mileage - if you had to go to a conference in Montreal from Toronto (and brought your whole family along - but a legit conference visit) I assume the to and from mileage would be considered business use? And I'm guessing if you did something like seeing a client in Muskoka (out of our regular service area) and then going to the cottage, the CRA would call BS on something like that?

I plan to track all mileages with an app and keep a log, just trying to figure out best way to maximize business deductions and do it legally while still being able to get some family use out of the vehicle.
Sr. Member
Mar 6, 2002
823 posts
296 upvotes
Vancouver
If leasing a car for incorporated business, does it matter whether to start leasing in beginning of calendar year or business fiscal year? What's the reason or reasons behind this? TIA
Deal Fanatic
User avatar
Jul 12, 2003
7795 posts
910 upvotes
Markham
Gee wrote:
Sep 1st, 2017 5:14 pm

and they question your ability in your chosen profession.
Probably an beat up Accent, but not if you driving the new Genesis 3.8. It is a very elegant vehicle.
Retired Forum Moderator February 2009 - June 2015
Newbie
Jan 22, 2017
47 posts
14 upvotes
What did you end up doing?
Buying or leasing?
Deal Addict
Feb 9, 2009
4481 posts
2215 upvotes
Get something in the middle - like a Lincoln, Cadillac -- somewhat luxury but not too in your face. Looks professional, but not too flashy for clients.

Benz, Audi, etc is maybe the max I look at. If you go Porsche or above yeah that may be off putting for some people as they think you may be ripping them off. But since your in dental surgery even a Porsche may be ok as people know your going to be charging a ton and making a ton of money.

Also for write off, it is advised to keep a log book (though I would venture 98% of people never do) so deduct a "Reasonable" amount so if you get audited you can justify -- some auditors are hardcore from what I heard and if you dont have a log book they will disallow 100% of the allowance and some more reasonable as long as you can justify it.

Good luck.
Jr. Member
User avatar
Oct 10, 2010
173 posts
49 upvotes
Ottawa
I think mileage may also work for some people. Then does not matter if you bought or lease or is it bmw or truck or van. If you live close to your practice it may not be good option though...

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