Yet another lease vs buy thread - for business owner
Looking for some insight on my particular challenge.
Here's the background:
- I own my own business - solely owned corporation.
- I drive about 30-40% for business.
- I'm at a point where I don't really need to save every last penny if it means a little less hassle re: both negotiating for the car & paperwork for my taxes. But I'm still on RFD, so I'm obviously somewhat cheap. On that note:
- - I realize I don't want the corporation to own/lease the car directly. The standby charges & CCA don't seem that great when you need to use the car over 50% personal, and the paperwork burden is a pain. So I'll either lease or buy/finance and for simplicity, charge my company the allowable tax-free 54¢/km. Seems simplest.
- - I realize I probably want a new (to me, at least) car every 3 or so years. Yes, I realize I can probably save the most over the long time buying a 3 year old used car and driving it for a long time. But I'll get bored after 3yrs.
- - I'm not buying anything I can't afford, and staying pretty close to the $30k mark, given that the gov't doesn't give business owners much to work with if you spend much more than that.
So, I'm currently looking at trading in my car (let's say value = $8k) and either:
- buying a 1-2 year old car with 15000-25000 kms on it (let's say $27,500-30,000) and financing the difference, OR
- leasing a new one (list price - let's say $37k)
Yes, I realize I'll pay a bit more in the long run for leasing, but
- can I expect to have a dealer move more $$/% when negotiating a new car vs a 1-2 year used car? or the other way around?
- with CCA/depreciation, it seem like the tax deductions are more attractive for leasing, and it seems like other allude to this... has anyone got a detailed explanation here or have an article that breaks it down clearly with examples?
Lastly, if I do lease, am I right in strategy to negotiate an out-the-door price for a new vehicle, and then switch to a lease model at the end?
I feel like I have to get a PhD in car-buying just to avoid all the tricks & traps. Is there something like CarCostCanada but that helps me negotiate a smart lease?
Thanks folks.
Here's the background:
- I own my own business - solely owned corporation.
- I drive about 30-40% for business.
- I'm at a point where I don't really need to save every last penny if it means a little less hassle re: both negotiating for the car & paperwork for my taxes. But I'm still on RFD, so I'm obviously somewhat cheap. On that note:
- - I realize I don't want the corporation to own/lease the car directly. The standby charges & CCA don't seem that great when you need to use the car over 50% personal, and the paperwork burden is a pain. So I'll either lease or buy/finance and for simplicity, charge my company the allowable tax-free 54¢/km. Seems simplest.
- - I realize I probably want a new (to me, at least) car every 3 or so years. Yes, I realize I can probably save the most over the long time buying a 3 year old used car and driving it for a long time. But I'll get bored after 3yrs.
- - I'm not buying anything I can't afford, and staying pretty close to the $30k mark, given that the gov't doesn't give business owners much to work with if you spend much more than that.
So, I'm currently looking at trading in my car (let's say value = $8k) and either:
- buying a 1-2 year old car with 15000-25000 kms on it (let's say $27,500-30,000) and financing the difference, OR
- leasing a new one (list price - let's say $37k)
Yes, I realize I'll pay a bit more in the long run for leasing, but
- can I expect to have a dealer move more $$/% when negotiating a new car vs a 1-2 year used car? or the other way around?
- with CCA/depreciation, it seem like the tax deductions are more attractive for leasing, and it seems like other allude to this... has anyone got a detailed explanation here or have an article that breaks it down clearly with examples?
Lastly, if I do lease, am I right in strategy to negotiate an out-the-door price for a new vehicle, and then switch to a lease model at the end?
I feel like I have to get a PhD in car-buying just to avoid all the tricks & traps. Is there something like CarCostCanada but that helps me negotiate a smart lease?
Thanks folks.