I own my own business, and have written off a new leased car for the past 8 years. My question is - do you realize the same tax benefits when leasing a used car? I thought I'd heard somewhere the benefits were not as good as when leasing a new car. thanks.

kevin

 

Kevin-

The benefits are exactly the same. We do a lot of used car leasing for business owners.

 

Tarry,

Since the big first year depreciation hit is over, wouldn’t the used car yearly residuals change from a new car lease?

If they do, as an example, how would be your numbers below change for a one year old e550. I assume MSRP would become sale price.

2007 E550 4dr Sedan / Compare Instant Lease Quotes

24 mo/15k mi – Residual Value 64% of MSRP – .00405 Base Money Factor Rate
36 mo/15k mi – Residual Value 52% of MSRP – .00370 Base Money Factor Rate
48 mo/15k mi – Residual Value 43% of MSRP – .00370 Base Money Factor Rate
60 mo/15k mi – Residual Value 36% of MSRP – .00370 Base Money Factor Rate

 

Hard to say from the Captives (manufacturers) leases as their residual are usually artificially inflated.

You can see the difference here based on bank leases for new and one year old models: http://www.leasecompare.com/lease_quotes.php

Keep in mind that the '06 models are still considered "new" as far as how the residual value is calculated. If you wait until 1/07 you can then compare a new '07 to a used '06.

 

I'm considering leasing a used '05 E55. Would I be better off waiting till 1/07 for a lower residual?

 

It sounds like it would be. You should be able to wait a couple of days to find out. If you have found your car, maybe give them a deposit to hold the car and see what they offer today and also what others can do and then check back with them the beginning of the week.

 

Here are the lease quotes for 2007:

http://www.leasecompare.com/quick_le...cedes+Benz+E55

BTW - this is a new quoting format. Please provide any feedback on functionality and ease of use.

Thanks in advance.