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alkyoneus

Used car lease through CU?

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I'm looking into options for used car leasing via a credit union. I need a lease so I can expense it as a business expense via S-corp.

I need a semi luxury car to drive clients around, but I'd prefer to do it on a used car and not take a hit on the major depreciation or continue to rent cars a few times a month.

Has anyone done something like this? Lets say a 6-10yr old Mercedes or higher end vehicle  with a 40-60k value lease.

The goal is to not take a hit on depreciation. I understand some of these older cars have higher maintenance costs but it would be business expense.

Any guidance?

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from what little I know, non-captive leases are very expensive. 99.9% of 10 year old Mercs are not worth 60k IMHO.

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There's higher maintenance costs, then there's Mercedes-Benz. I think the only vehicle on the road who is higher maintenance is a Ferrari. Don't waste your money on an old Mercedes. You'd be better off renting if its only a few times per month and you're able to write it off as OpEx.

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You can take the depreciation and interest write off which would equal your entire payment assuming a 5 year loan and 5 year depreciation period.  

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On 2/18/2019 at 3:21 PM, IndyPoolPlayer said:

There's higher maintenance costs, then there's Mercedes-Benz. I think the only vehicle on the road who is higher maintenance is a Ferrari. Don't waste your money on an old Mercedes. You'd be better off renting if its only a few times per month and you're able to write it off as OpEx.

After the warranty expired on my E500, in no eight-week period did my maintenance and repair costs exceed $8,000.

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31 minutes ago, cv91915 said:

After the warranty expired on my E500, in no eight-week period did my maintenance and repair costs exceed $8,000.

The CEO of two employers ago leased a 2000 BMW 7 series, took it to the local dealer for its "first service". $1500 later his BMW was serviced. He later turned that in at the end of its lease and leased a Mercedes S-something. He always came in grumbling when he had to take it in for service.

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19 minutes ago, IndyPoolPlayer said:

The CEO of two employers ago leased a 2000 BMW 7 series, took it to the local dealer for its "first service". $1500 later his BMW was serviced. He later turned that in at the end of its lease and leased a Mercedes S-something. He always came in grumbling when he had to take it in for service.

And the service is the inexpensive part. ;) 

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Which reminds me that I blew out the factory subwoofer, and the OEM part was ~$1,200.

 

So I took the car to Best Buy, where they informed me that they were forbidden from touching two types of cars:  the E500 family and 7-Series BMWs, due to liability.  

 

"Sir, you don't just have wiring like a normal car, you have a fiber optic network.  If we make a mistake it could cost us $10,000 or more to have it fixed."

 

So I had the dealer disconnect the subwoofer.

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