I know this topic has been discussed dozens of times on each and every forum, but I was hoping someone could help me with the actual math for a specific situation. So far I've either driven old cars or financed new ones, never leased, mostly because I find it to be somewhat annoying from a psychological standpoint, BUT I want to be able to understand the specific math and see if it MIGHT indeed make sense for me to lease. Basically I want someone to convince me that leasing MIGHT indeed be a better option for me.

So let's take my specific situation, with some rough realistic numbers: option 1) lease a 2017 car for $800 a month, nothing down, and then say in 3 years do the same 2) finance maybe a 2014-2015 car, same model, with an $800 a month payment for say 5 years and trade it in in 6 years. +/-, these are not exact numbers, but ballpark. Basically looking to get a reasonable luxury car, car will be driven 50% for self-employed business related trips, I am in the 33% tax bracket. (Driving a new car every 3 years per se is NOT important to me, and I realize that OVERALL financing a used car is "cheaper" but my goal here is to find out what my "savings" in terms of taxes will be.)

For leasing, if I understand this correctly I would basically I will deduct 50% of the $800, so will save taxes off the $400 a month, thinking simplistically? vs how do I estimate what the actual $ savings would be off depreciating a financed car?

Thanks!

So let's take my specific situation, with some rough realistic numbers: option 1) lease a 2017 car for $800 a month, nothing down, and then say in 3 years do the same 2) finance maybe a 2014-2015 car, same model, with an $800 a month payment for say 5 years and trade it in in 6 years. +/-, these are not exact numbers, but ballpark. Basically looking to get a reasonable luxury car, car will be driven 50% for self-employed business related trips, I am in the 33% tax bracket. (Driving a new car every 3 years per se is NOT important to me, and I realize that OVERALL financing a used car is "cheaper" but my goal here is to find out what my "savings" in terms of taxes will be.)

For leasing, if I understand this correctly I would basically I will deduct 50% of the $800, so will save taxes off the $400 a month, thinking simplistically? vs how do I estimate what the actual $ savings would be off depreciating a financed car?

Thanks!

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