Leasing Vs Buying

[Spicky]

Hi all,

 

With regards to Leasing vs Buying, what are your opinions on them ? which is better and why?

 

Thanks in advance.

[Bugsbunny]

Of course.

for leasing 1 car would cost more than 1 k.

while buying need to pay around less than 1k depend on loan.

[Guyver]

If you thinking of changing car or don't know what car to buy within the next 2 years ...

 

Lease.

 

If you are the type that can drive for long term ...

 

Buy.

[Suriabarca]

leasing ofcourse

[Byond]

Actually, all our cars are considered ''on leasing'' as they are tied to COE.

 

There is no actual ownership.....

 

Lease - pay more than 1 k with insurance and road tax covered per month

You will not get back anything when COE is up.... no burden when u decided not to lease anymore

u would be paying more if u include servicing costs...

 

Buy - Pay more than 1 k with installment, insurance, road tax per month

Cannot say sell as you like it as its determined by the COE system, market value... etc....

At the end of the day, u still get back some money if ur COE is up or when u decided to sell (provided its past ur break even loan period)...

 

Burden wise - YES.... until you break even with ur loan....

 

[Cheepo]

Hi,

 

May I ask fellow forummers who are business owners if your car lease can be expensed off and hence reduce your company tax ?

 

I am referring to passenger cars and not commercial vehicles.

 

Many thanks in advance.

 

 

 

[Acemundo]

IRAS disallows all private car expenses as deductions. all passenger cars are deemed as private car.

[Jman888]

Hi,

 

May I ask fellow forummers who are business owners if your car lease can be expensed off and hence reduce your company tax ?

 

I am referring to passenger cars and not commercial vehicles.

 

Many thanks in advance.

 

yes if the agreement is draft between company and leasing company. Must prove the car is solely use in the course of business, any personal use should be pro-rated into employee benefits and be include under the employee IR8A.

 

 

[Huat138]

Hi,

 

May I ask fellow forummers who are business owners if your car lease can be expensed off and hence reduce your company tax ?

 

I am referring to passenger cars and not commercial vehicles.

 

Many thanks in advance.

 

all s-plate vehicle expenses are non tax-deductible.

[Huat138]

yes if the agreement is draft between company and leasing company. Must prove the car is solely use in the course of business, any personal use should be pro-rated into employee benefits and be include under the employee IR8A.

 

from iras website : "Motor vehicle expenses incurred in respect of private passenger cars (S-plate cars) are not deductible for income tax purposes regardless of whether the cars have been used for business purposes (except where the company is carrying on business of hiring out cars or providing driving instruction). The deduction is specifically prohibited under the Income Tax Act."

 

who taught you that drafting the agreement can siam tax?

[13177]

We do not need to pay for servicing, rd tax and insurance if we lease. But the cost of leasing a car avg need to pay abt $1200 per mth!

[Cheepo]

Thank you guys for the information !

[Picanto]

Hi,

 

May I ask fellow forummers who are business owners if your car lease can be expensed off and hence reduce your company tax ?

 

I am referring to passenger cars and not commercial vehicles.

 

Many thanks in advance.

 

 

last time got Q plate cars. i used that as company expenses. too bad many people take advantage of it. in the end kena changed.

[Ferraricalifornia]

they can't register the car under company meah???

[Zanter]

This is a sad fact which most motorist dont appreciate. We in fact dont really own our cars as the finance company is the real owner and even if we fully paid-up the car, it only temporal ownership till the COE expires.

 

Very often even when we wish to sell off the car, we may need to top-up the finance. So given the choice I would rather lease but normally lease is more expensive?

[Yeobh]

If your company is cash rich , leasing is the way to go.

[Ferraricalifornia]

This is a sad fact which most motorist dont appreciate. We in fact dont really own our cars as the finance company is the real owner and even if we fully paid-up the car, it only temporal ownership till the COE expires.

 

Very often even when we wish to sell off the car, we may need to top-up the finance. So given the choice I would rather lease but normally lease is more expensive?

 

 

 

 

but that's because you haven't throw in any downpayment for the car.....

 

treat it as deferred downpay scheme....

 

 

 

and yes,

 

the cars that we pay for, 'belongs to us' (what an irony) for 10yrs.....afterwhich, the car is of no value, and you'd have to extend the COE for another 10yrs just to drive the car.....

[Yeobh]

The cost of buying is taken as fix asset which your co can writes down in seven yr. Leasing is expenses.

Edited September 29, 2010 by Yeobh