Looking for article comparing leasing vs buying car benefits and calculations for landlord.

Thank you.

Lots of articles on that on you tube.

To me, lately, it seems to be an analysis of cost per month verses how much you need the vehicle.

Some things I consider in addition:

availability of mechanics and parts.

How much do I really need the vehicle? Do I need it for going to work? Hauling kids?

Alternate transportation if it's broken down?

Mostly used around town" How big a town? LA sized? 2500 people sized?

Friends/family that can give a ride if I breakdown?

Spending money?

Like some landlords here, if I'm making thousands per month, it really doesn't matter because the number is insignificant. But like some others, maybe the smaller landlords with a job to go to everyday, the situation is different.

I purchase my vehicles and drive for 10 to 15 years. To me leasing is like renting with nothing to show for all the payments.

Smartest financial move is to buy a 1 or 2 year old vehicle with a remaining factory warranty and drive it for 10 to 15 years.

Leasing a car is basically like renting a car. You are taking an essentially new vehicle and the payment you make includes the "cost of credit" which is a combination of both the interest they would normally earn by financing the vehicle and also the assumed depreciation that the dealer will eat by renting you the car. Also, consider that today used cars are holding their value because of shortages, and you're giving up any potential high resale value at the end of your lease.

For any business--land lording or whatever--you get to choose to either deduct discrete expenses or take the flat mileage rate. Expenses typically get you a higher deduction when a car is new because you can take depreciation and the value of the car falls quicker when it's new vs when it's old. Older cars you get more benefit on mileage. A leased car would only include the payment plus operating costs like gas.

Regarding the cost of the vehicle: if you buy an expensive car, you probably want to deduct discrete expenses. If you buy a less expensive car, it is more effective to use the flat mileage rate. The rate is the same regardless of how expensive your car is: you get your 57.5 cents per mile whether the car costs $100,000 or $10,000.

My advice is buy a used, basic vehicle to max out your deductions using the flat mileage rate.

I lease my truck but still just write off mileage. I don't have another vehicle at the moment so the truck is not 100% business use only. I also don't want to title it in one of my LLC's.

Sid you absolutely can cash in on your equity on a lease. You can buy it out and re sell the vehicle at any time. I have about $6k in equity in my GMC Sierra Denali right now...

Leasing protects you from the downside of a tanking market, also a lot of manufactures incentivize leasing by bumping up residuals to move vehicles.

For example even in this market right now Nissan set a 99% residual value on the new 2022 Frontier on an 18 month lease. If you can find a base 4x4 SV and get it for MSRP the payment with taxes is in the high $100 range. That's fantastic for a $34k vehicle.

Leasing is not exactly like renting, Sid. You CAN buy the car anytime at a set price, and you can deduct the entire lease payment if it's a business vehicle.

Interesting, very interesting, so many different thoughts, i was thinking into leasing not long ago, we need a second vehicle, something not to old because it will be for my wife, glad i found this thread, i will keep reading comments.

If you believe the current car shortage is just a temporary thing, it just might make sense to lease one for a couple of years.