Lease payments and tax benefits?
Does anyone know anything about this? http://www.pwli.com/
Making lease payments is a tax benefit?? Lets say I wanted to buy a truck for $40,000 and wanted to go through these guys. I'd pay a lease payment every month and at the end of my term make a %10 baloon payment at the end and the truck is mine? I'm confused. :? |
That really suprises me that nobody can tell me about this.
How many members on here want to talk about "fleece" purchasing (and I agree to some extent) but here I am offering a way for you to lease a truck of your choice outside of the company you work for! (and no I don't work for this company, I'm an OTR driver) Give me some feedback folks? GMAN? |
The obvious disadvantage to this is you would still be responsible for the routine maintenence and breakdown. As well as building no equity in it :shock: but the advantage of it is, if things arent going so well at the company you're at now you can go to another company.
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I would tend to stay away from programs like this. Words like non-cancelable, and lessee pays all taxes and insurance fees, are red flags when you have a monthly payment during slow times.
There are tax advantages to leasing, but only if you are making a huge profit, and not scraping by week to week. Just my opinion, and I was a bit turned off by their web site, seems like a company that has been around since 1987 could afford a better site. Not to mention that they seem to have their hands in all kinds of commercial equipment, makes me think they have too many irons in the fire to be able to be focused. I could be wrong, but first impressions,....you know what they say. |
Here's a copy of the email that was sent to me...
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The taxes are going to be bad no matter what. Self-employment taxes are double what social security is. Quote:
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Lease payment is tax deductible 100% because you use it to run a buisiness, everything you spend on it is tax credit that you can use to write off from your gross profit so you dont pay income tax on your buisiness expenses..there is tax that you have to pay thru that payment regardles and thats another thing...
10% of the payment that you have to give them at the end of that term is VERY HIGH and right there i would scrape them off my list.. I currently lease my truck through my local bank where i pay 100$ at the end and truck belongs to me + interest rate is better than a straight out purchase, all said and done my suggestion would be to go elsewhere for your credit needs.. Good Luck |
I would come up with a number for what you want to lease, and then follow it to its logical conclusion.
You will know exactly how much the %10 buy out amount is. Just take the length of the lease, the cost of whatever insurance THEY require you to carry, divide by your monthly payment, and you will be able to tell if its worth it. I looked at their equipement to lease, and with nothing newer than an 03 T-2000, I would worry more about being able to keep the vehicle on the road, and out of the shop. Remember, if it sits, you make no $$, and I'm sure THEY can cancel the lease anytime they want,....even if the truck is broken down and you are trying to make ends meet. I saw some of the trucks were as low as $19,000, but they were mid 90's and a bit worn looking. I would steer clear of this kind of program. It seems like a revolving "tired iron" mill. They are in it for the $$ not the personal relationship. I could be wrong, I only play a truck driver on T.V. |
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so $4,000 at the end of the term aint that bad, right? Depending on the terms of course... |
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