Lease or buy?

Discussion in 'Lawn Mowing' started by ercrvs24, Jun 15, 2005.

  1. ercrvs24

    ercrvs24 LawnSite Member
    Posts: 93

    Just wanted to know how many of you guys own your trucks or lease them and why. I own right now, but I saw a new f150 4x4 V8 lease for $199 a month, plus I've heard if you lease, you can write off the payment the gas the maint. and everything. Just want to see what the best option is. :rolleyes:
     
  2. V1101

    V1101 LawnSite Member
    from KC, MO
    Posts: 4

    Did you factor in that you should be depreciating the value if you own?

    I am a finance guy that comes here to pick up a few tips (lawn junkie at heart). Without working through the numbers, it seems like owning ought to be a better decision for a business owner, especially when you consider mileage limitations in most of the teaser lease rates advertised.
     
  3. ercrvs24

    ercrvs24 LawnSite Member
    Posts: 93

    But when you own (in companies name) and then it comes time to sell and get something new, you have to claim that as income. Seems like a headache. :dizzy:
     
  4. DLCS

    DLCS LawnSite Platinum Member
    Posts: 4,380

    Just remember you are using this truck for work so think about wear and tear. I know most leases you are responsible for dings, dents and scratches. Also, is this a business lease for $200 a month or personal? You can write off the maintenance, and fuel, every year on a truck that you won too.
     
  5. ercrvs24

    ercrvs24 LawnSite Member
    Posts: 93

    I'm ignorant in the "write off" on vehicles, but I thought that it was either mileage OR maint. and gas (No Payment) if you own. Please inform me.
     
  6. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    In ohio it is mileage or maint. This is what my accountant told me. So at the end of the year I have to figure out each and go from there.
     
  7. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569


    For Federal Taxes yes you either write off mileage or maintentance, but not both. If the company owns the vehicle (and it is in the company name) then depending on the situation of your company and business and if the truck is only used for business and not personal use then you may also be able to write off the payment.
     

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