Do you have any advice on vehicle leasing for business purposes? I’ve heard that the expense is 100 percent deductible.
Yeah, and it’s 100 percent stupid, too! “Fleecing” is absolutely the most expensive way to operate a vehicle. What you’re talking about is rationalizing the fact that you want a vehicle you can’t afford. It’s a bad idea.
Dr. Tom Stanley interviewed tons of millionaires while he was writing his book, “Stop Acting Rich.” In the process, he found out that 80 percent of them had never leased a vehicle. What does that tell you? It tells me if you want to be rich, you need to do what rich people do—and they don’t lease their vehicles! Plus, I really don’t care if it’s 100 percent deductible. Guess what? I get deductions on the vehicles owned by my company. It’s called straight-line depreciation.
Never lease a vehicle for business purposes. If you don’t have the cash to pay for it outright, then you can’t afford the thing. It’s just that simple!