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Leasing Trucks

Discussion in 'Rental Equipment' started by ArizPestWeed, Feb 1, 2007.

  1. ArizPestWeed

    ArizPestWeed LawnSite Bronze Member
    Posts: 1,457

    Ever heard of this ??
    You buy trucks and lease them to your business .

    Cut out the middle man .
    I guess you lease them to your self for a $1000 a month
     
  2. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    I've heard of it before, my sister-in-laws father did that when he was in a business, also some buildings I think. But I just lease thru ford or dodge, I figure less red flags for the irs to see.
     
  3. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    I'd advise you to talk to a account that acctually knows alot about leaseing. I would not take financial advice from other lawn guys on this site.

    Be sure to talk to an accountant that fully under stand leasing. So many people have no idea what the benfits really are of leasing and just look down upon it.
     
  4. IRRITECH

    IRRITECH LawnSite Senior Member
    Posts: 931

    Yes, I have heard of that, but as of yet I cannot get a straight answer from my accountant. I seriously doubt that you can lease it back to the company for more than the fair market value, but that should still be more than your payments.

    Which would definately help your bottom line.
     
  5. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    I am not sure if there are limits on what you can lease it for. But i know you got to remember that any money you make on that lease is taxable!
     
  6. ArizPestWeed

    ArizPestWeed LawnSite Bronze Member
    Posts: 1,457

    Oh yeah , I did think of that .
    :rolleyes:
     
  7. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    Dave Ramsey has some interesting thoughts about leasing(from a dealer)... he seems to think you might as well light your money on fire.
     
  8. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Yes, but he is an expert on PERSONAL finances.

    I believe the question here is in the context of leasing for business use.
     
  9. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    Actually he made it perfectly clear for business or personal use... it is throwing away money. Ramsey has a multi-million dollar business, so I think he has the experience. I can quote it out of the book if you want. It really is a great book on building the wealth.
     
  10. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    Dave owns his own business and does not lease cars. He does not endorse leasing EVER. As a matter of fact, he makes a good point on vehicles used in a business...what are you doing? you DRIVE them twice three times as much as a daily driver therby DESTROYING the value of the vehicle. Why not buy an older USED vehicle that has already taken the depreciation beating but is still dependable...YESSS...there IS such a thing!! THink about it guys..and don't give me this I WORK HARD I DESERVE A $40K truck...that's how a 5 year old rationalizes things..I want it I want it I WANT IT NOW!!!
     

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