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Ask Dave

Car Leasing is 100% Stupid

Car leasing so you can take a tax deduction on a small business sounds like a good idea. To the caller.

QUESTION: Listener on Twitter wants to know if there are any benefits to car leasing for small business purposes. He heard that the expense is completely tax deductible.

ANSWER: It’s 100% stupid, too! Fleecing a vehicle is the most expensive way to operate a vehicle. Dr. Tom Stanley, in his new book Stop Acting Rich, says that 80% of millionaires have never done car leasing. If you want to be a millionaire, do what millionaires do and don’t lease cars.

I don’t care about your stupid tax deduction. You’re trying to rationalize buying a car you can’t afford. If you don’t have the cash to write the check and own the vehicle, you shouldn’t own that car. It’s really not any harder than that.

I get straight-line depreciation on the vehicles owned by my business, and I don’t have to be in debt with car leasing to do that.