samcro

Hello Everyone,
I am new to the forum and looking to Purchase my 991. I am a full time Real Estate investor and seeking advise on how do most Investor / Business folks purchase their cars. (Cash/Lease/Finance)
As most of you know Real Estate in GTA has been on Fire lately and my money is doing exceptionally well in the market. So I am not really looking to block $100k+ in a car.
So my question is..
Do you guys Lease these cars so payments can be written off as expense?
Buy them cash?
Use 3rd party Leasing companies to maximize Residuals?


Thanks in advance.

CamsPorsche

My advice is speak to your accountant as there's a limit to what you are able to "write-off".

For example I know people who have businesses where the mileage incurred is the best option vs. the max lease payment of $800 that can be expensed.

I would think in your line of business your mileage will be higher than normal so perhaps that route is best. Only your accountant knows having seen how you've structured your business.

Wouldn't a sedan be more apt for clients?

samcro

Sorry I should have been more clear..I already have 3 other cars that I use for personal/business/family.
I meant to ask about "Exotics"..Your weekend cars.

squid42

Business expensive isn't limited to leases. It is just easiest.

The current residuals on Porsches, as far as I could find them, are so unattractive that they are unlikely to work out in total cost of ownership. If you get an attractive 991 you will easily beat them when reselling, while paying lower interest until then.

Owning is also easier to get out of if you need to suddenly. Just sell, at whatever loss you want to take in exchange for speed. Ending a lease officially is very expensive, and you won't find somebody to take over a lease that has bad residuals.

mike.baa

I asked my accountant the same in MY scenario. If i don't use the car mostly for "work", then a 100k spending on a car should be made outside the corporation.

But again, like others have mentioned, best to ask your accountant.

petee1997

These cars are toys that serve very little practical purpose. Look at the purchase of a 911 as pissing your money down the drain. Pay cash, enjoy the car while you own it and don't expect to see the bulk of your purchase price ever again.

If you must borrow for such a useless item, you should not buy it.

gsxr_fvr

Interesting

samcro

So the question remains:
Do most buy their weekend cars "Cash" OR
Finance w/ minimum down and do installments & have access to liquid cash available on hand for potential investments

docdrs

Cash is King

KenTO

Cash for my exotics, lease my DD, get a new one every three years or less.

Ronan

I buy for cash personally. I do not like to be worried about debt or downturns of any kind, so best to get the deal done and forget about any depreciation or the like. I do not think you can put it through your company anyway and it seems prudent to separate your personal expenditures from your business ones.

raymoni

DD is financed through business, and my toy is paid cash...

samcro

Thanks for all this great info. While we are on this topic, any chance 991.1's coming down in price anytime soon in Canada. It's such a different market in the used sector compared to U.S. Very little inventory and they are still holding their prices really well despite 991.2 release.

PPo

What a modest and non-descriptive way to ask a simple question. (Sarcasm)

Seven total posts to date, and four are in this thread. Sir OP, I do have my suspicions about your query, but your conduct so far is polite, acceptable, and welcome.

CamsPorsche

In short...no.

Canada receives a fraction of the cars the U.S. receives so not as much selection. There's simply not much out there.

Last week there wasn't a single 991 targa! Loads of overpriced GT3's though...