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vans? new, lease or own?

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  • vans? new, lease or own?

    I had a call from a leasing company today...they will do leasing on mobile grooming vans. Question: Is it better to lease or buy? with leasing, the whole payment is a tax deduction(I was told), with owning, only the interest is tax deductable, plus what depreciation you can take...any input or ideas would be greatly appreciated!! Thanks all!!

  • #2
    depreciaton will cover the full amount of the van, just not in the first year. it is spread out over time. the only thing about buying used anything is you don't know how it was maintained. every 3,000 miles, my van goes to dodge for whatever service is due, and my generator every 5 weeks, and i still wouldn't buy my own vehicle. i say, that unless you know the person, then either go lease or new. then again, every van payment you make is your own not lining the pocket of some one else.
    Certified Master Pet Tech Pet CPR, First Aid and Care Instructor
    "Compassion will cure more sins than condemnation." Henry Ward Beecher US Congregational Minister 1813-1887

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    • #3
      The nice thing about purchasing a vehicle is that in the end, when the payments are done, you actually own something. If that does not phase you, then leasing will keep your costs down. It is almost as if you were renting a space for your shop. I just prefer to own it in the end.

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      • #4
        I vote own

        Only you can decide wether to buy new (under warrenty).
        Auto dealers are makeing some pretty good deals lately.

        Or if you have a member of the famiy that is a handy person,
        you could put it together yourself (takes time though).

        Or buy a used one in decent shape that is fixed up already.

        I didn't borrow a dime to do my in home shop. I just am not sure
        how many dogs I can pull here, so I play it safe. It has taken me longer
        than I thought though.
        I hear if some putting so much into some shops, I wonder how they
        will ever break even. Just go slow and do the business plan.

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        • #5
          Leasing?

          Sounds interesting. Where are you leasing from? What companies? Keep me posted.

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          • #6
            Ask your accountant is the "full lease payment" is truely deductale, you still have to pay it! I would be very concerned about the wear and tear issue, they will charge you big time!

            Stephen: Lease payments, including the sales tax they tack on, are almost certainly tax deductible, you don't own the property which would then be treated as a depreciable fixed asset instead. If you buy it out at end of lease the buyout could still keep it a depreciable asset too and a business expense, in whole or part, see an accountant. Leases preserve cash and that's the main reason, but true, as one who done many auto leases, you have to be careful of excess mileage, dents and dings etc. I always leased higher end vehicles that kept their blue book value because I often sold the vehicle, paid off the lease closing and kept the balance of the cash from the sale. Like people say here, these are issues for accountants.

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            • #7
              it is an interesting option..and thanks Stephen for your input. The big plus to leasing is there is no 20% down required, and you can own something lil more expensive on cheaper payments just cost more in the long run. Then again, so does a house when you finance it or car or anything else. Something to think about. I will keep ya'll posted on the terms of this and let you know what I decide. I've posted before that I own a shop now for going on 9 years. I have a groomer wanting to buy my business..Im wanting to start the mobile up and gradually build that and phase out of the shop so I can turn it over to her. With what she pays me for the shop I can utilize towards my van..will see what the accountant says and let you know!

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