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Lease vs Finance

Discussion in 'Canada' started by sagaboy, May 22, 2015.

  1. sagaboy

    sagaboy Member

    Joined:
    May 22, 2015
    Messages:
    76
    Location:
    Canada
    Hi guys/gals,
    I am soon gonna be a proud owner of s70d and wanted to know if anyone had some idea which is better. Lease vs Finance. From a business lease vs personal loan.
    I was told that if leasing (under a business) you can only right off a maximum $900 a month and if I were to finance it I can invoice the business .50c a km. Was wondering if anyone had this similar issue and if so what did you do?

    Appreciate any help..
     
  2. Luclyluciano

    Luclyluciano Member

    Joined:
    Oct 11, 2013
    Messages:
    177
    Location:
    Canada
    You can only invoice the business 30% per per year calculated on up to $30,000, plus interest, plus repairs plus the applicable HST if you collect and remit. I think thats the formula.
     
  3. sagaboy

    sagaboy Member

    Joined:
    May 22, 2015
    Messages:
    76
    Location:
    Canada
    WOW:biggrin: Thanks for the quick reply. Sorry to be a pain but is that for leasing or is it just the standard maximum for both?(leasing & Financing)

    Thanks again
     
  4. cwave1

    cwave1 Member

    Joined:
    Oct 26, 2013
    Messages:
    234
    Location:
    Mississauga, ON, CANADA
    I'm self-employed and used to lease all of my cars prior to my Tesla. When I got mine 18 months ago, leasing was not an option in Ontario so I financed mine with the Scotia 7 year @ 3.99% package being offered by Tesla. What I now do for taxes is use the car allowance price per km that the CRA allows. This is an all in amount so you don't claim other expenses separately. When I compared the leasing method to this one, I think I'm doing better using the mileage allowance.
     
  5. sagaboy

    sagaboy Member

    Joined:
    May 22, 2015
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    76
    Location:
    Canada
    Thanks. Cwave1. That really helps. Just curious how much km do you put on your ms?
     
  6. swrving

    swrving Member

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    Mar 20, 2015
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    Location:
    Campbellville, ON, Canada
    I also take the mileage approach, I believe it's $0.55/km for the first 5000km/year, and $0.50/km thereafter. In general I drive about 35k per year 20-25k for business.
     
  7. sagaboy

    sagaboy Member

    Joined:
    May 22, 2015
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    Location:
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    Thanks serving. I'm now being torn between these 2 issues and feel that I'm gonna lean towards leasing in the event tesla goes bad (20% chance) at least I'll have someone to buy the car in case. I dont want this but could happen.

     
  8. allanhof

    allanhof Member

    Joined:
    May 1, 2015
    Messages:
    101
    Location:
    Carlisle Ontario
    Financing about half the vehicle....I plan on keeping mine a while and do not want to be hampered by mileage overages etc.
     

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