How Much is Your Car Payment?

[Commercial Inside Release]

They're siphoning company profits off, to pay for vehicles and put the depreciation on the company, through business deductions.

Back in the day, when the IRS was gung-ho about kicking individual households around, they might have followed him & wife around, audited his returns, and demanded a ledger that proves the miles\receipts were actually for business.

It's a good idea, but like right club, you shouldn't talk about it.

But, from a practical standpoint, the money\depreciation written off is coming out of the company's bottom line, so it isn't truly saving anything. On the other hand one or two lazy employees can cost you far more, as can a customer that doesn't pay and requires court action... So, it's just money. There are a lot of potential advantages to having your own business.

 

[Up In Smoke]

They're siphoning company profits off, to pay for vehicles and put the depreciation on the company, through business deductions.

Back in the day, when the IRS was gung-ho about kicking individual households around, they might have followed him & wife around, audited his returns, and demanded a ledger that proves the miles\receipts were actually for business.

It's a good idea, but like right club, you shouldn't talk about it.

But, from a practical standpoint, the money\depreciation written off is coming out of the company's bottom line, so it isn't truly saving anything. On the other hand one or two lazy employees can cost you far more, as can a customer that doesn't pay and requires court action... So, it's just money. There are a lot of potential advantages to having your own business.

We have been audited twice in the last 12 years and the way we work out transportation costs were never in question. I believe most, if not all company vehicle programs, run just like ours.

 

[Up In Smoke]

I only brought it up because the article didn't break down how many of those 1K payments were for individual buyers and or leasing companies.

 

[rod]

I'd shoot myself if I had a thousand dollar a month car payment. I like my plan where I drive new stuff-pay cash for them and have zero car payments.

 

[Up In Smoke]

Not sure how many people have heard of Turo. It's like RVBOs for car leasing and rentals. Our investment group got into it when Covid destroyed the rental market and now we own 10,000ish cars near airports from Atlanta to St Louis, Chicago and Frankfort. We bought our cars from the rental companies as they sold off units to try to stay alive. The rental car model is an interesting business model, filled will high volume purchases, creative financing and constant turnover of "program" cars.

 

[IVE GOTTA PACKAGE 4U]

I'd shoot myself if I had a thousand dollar a month car payment. I like my plan where I drive new stuff-pay cash for them and have zero car payments.

WDFD

 

[1BROWNWRENCH]

I detest the notion of making payments on a rapidly depreciating item.

 

[Up In Smoke]

I detest the notion of making payments on a rapidly depreciating item.

But you have no issues paying for a home 4x it's value plus maintenance over 25/30 years.

 

[Thebrownblob]

But you have no issues paying for a home 4x it's value plus maintenance over 25/30 years.

Not really a great argument a Home appreciates in value. Cars are a depreciating asset. Necessary sure, and since you’re using yours for business and making money with them that’s fine, most people are not. A car payment it’s like a boat anchor around your neck.

 

[Up In Smoke]

Not really a great argument a Home appreciates in value. Cars are a depreciating asset. Necessary sure, and since you’re using yours for business and making money with them that’s fine, most people are not. A car payment it’s like a boat anchor around your neck.

I completely understand the desire to own a home (the real estate industry drives our personal income) and at one time it was a way to build wealth. The loss of most deductions and the steady increases to taxes and insurance have diminished the value of a home purchase. Yes, a home will appreciate over time, but only fractionally to what you pay. We have seen in our area over the last 4-5 years a shift from private ownership properties to investment/private equity ownership properties. This works for them because of the ability to pull equity out of the properties virtually tax free on the earnings side.

 

[Thebrownblob]

I completely understand the desire to own a home (the real estate industry drives our personal income) and at one time it was a way to build wealth. The loss of most deductions and the steady increases to taxes and insurance have diminished the value of a home purchase. Yes, a home will appreciate over time, but only fractionally to what you pay. We have seen in our area over the last 4-5 years a shift from private ownership properties to investment/private equity ownership properties. This works for them because of the ability to pull equity out of the properties virtually tax free on the earnings side.

Sure you’re speaking about how city, state, and local governments are trying to cut out middle class people from generational wealth. That is mostly a political thing based on the ignorance of people voting for higher taxes, destroying their and their children’s future. It doesn’t mean the value does not go up. It just means you’re not going to get to keep as much.

 

[Up In Smoke]

Sure you’re speaking about how city, state, and local governments are trying to cut out middle class people from generational wealth. That is mostly a political thing based on the ignorance of people voting for higher taxes, destroying their and their children’s future. It doesn’t mean the value does not go up. It just means you’re not going to get to keep as much.

The issue we've seen the past decade is our state, county and local governments chose not to pay down debt when surpluses occurred. They instead chose for tax decreases and refinancing debt. When 2020 hit and revenues came to a screeching halt, we found ourselves in a double wammy situation. We had no way of paying our debts and no one to buy bonds. So when property values began to skyrocket in late 2020 and 2021, they had no choice but to reevaluate all properties and sock it to the property owners. The value of our properties have increased somewhere in the 40% range over the last 3 years. Good for us, because of usable equity, but bad for the majority of the private homeowners.

 

[sailfish]

Necessary sure, and since you’re using yours for business and making money with them that’s fine

That's what I thought at first but he apparantly isn't. That's why I'm not wrapping my head around this.

 

[Darmark7]

When I was a kid my dad told me “Son a car is something that will be one of your biggest expenses and every day you wake up and look at it, it will be worth less than the day before” I never looked at an expensive car as a good thing. When I was about 20 I bought my first new car. I bought one that I could pay off in 3 yrs. After paying it off I then paid myself that monthly payment in my savings or investing. That car lasted me 12 yrs. So when I needed another car I had plenty of cash to pay for it. To this day I’ve never had another car payment. When you’re paying cash then all of a sudden a $50,000 or more car doesn’t seem worth it.

 

[brett636]

My car payment is $472 a month and my wife’s is $738. I know that’s a lot going out for car payments, but my wife and I are blessed to have good jobs and we save enough between retirement and other savings to buy both our cars in cash every year. We financed them because the loans have excellent interest rates(0% and 1.9% respectively) and there is a mathematical advantage to investing that money rather than paying for them in full.

I know of drivers who buy new fully loaded diesel trucks every 2 years and I get it that most of us can afford to as feeder drivers. We are content to buy a replacement car every few years as my wife does most of the driving. One of the benefits of sleepers is only going to work once a week which really cuts down on vehicle wear and tear.

 

[pkgdriver]

Not sure how many people have heard of Turo. It's like RVBOs for car leasing and rentals. Our investment group got into it when Covid destroyed the rental market and now we own 10,000ish cars near airports from Atlanta to St Louis, Chicago and Frankfort. We bought our cars from the rental companies as they sold off units to try to stay alive. The rental car model is an interesting business model, filled will high volume purchases, creative financing and constant turnover of "program" cars.

Found Turo a few years ago but didnt work for me the couple of times I looked. Has been a while gonna go check the app again.

 

[bottomups]

It's all a tax, depreciation and liability game. All I know is, I drive vehicles no older than 4 years and our business pays for it.

I guess I'm happy to subsidize your vehicles with my tax dollars.

 

[Up In Smoke]

I guess I'm happy to subsidize your vehicles with my tax dollars.

I'm guessing your tax dollars are going towards my tri-toon. Which is an advertising and business entertainment purchase.

 

[over9five]

Just went from zero to a lot!

 

[IVE GOTTA PACKAGE 4U]

Just went from zero to a lot!

Did you lease a Nissan altima?