Either I didn’t make my point well or you aren’t familiar with how those loans work. The HELOC suggestion was an alternative way to achieve an interest only repayment option. But since a HELOC is at the core a credit line, you can pay whatever you want and you’re charged interest on the balance. The rate is just a rate and works like any other. You can pay interest only so of course you would never pay it off at the minimum rate. But a sensible approach is to pay any interest monthly plus pay off principal as it’s convenient to the business needs. (And if the company is solo owned, “piercing the veil” isn’t that hard anyway so the lien isn’t as big of a deal, but otherwise personalizing the liability may be a big negative to this.) The term of a loan doesn’t change the interest cost - you pay the interest rate on the balance every year no matter what, but with a line of credit you can change the principal on demand by paying it off for a while and then drawing money later on as required... so you can reduce the effective rate by managing the average balance. And typically it’s 15 years before it enters repayment, so simply close it before that happens.

That said, I’d expect I agree with you in your conclusion and a better way to go for the OP would be a car loan or lease for the car and just about every loan vehicle can be assessed independently as a way to fund the business. And that can keep business vs. personal liability separate which is good form regardless of the details.

If the owner just wants to flip the GT car for a profit and the state of residence allows him to pay sales tax on the use only, then leasing is a great option. (Maybe that’s the hidden detail.) Otherwise, it’s hard to beat financing with little down to minimize cash outlay. Financing brings a higher payment obligation precisely because of the repayment term. If drawing money for a business is another goal and 8% isn’t too expensive, it seems like a loan or credit line for the right amount to invest in the business will solve that problem and the OP can take the cheapest overall package to pay for the car by considering cash outlay, taxes, depreciation, and risk as a total package. Open lease, closed lease, traditional financing, long term up to interest only financing, whatever.

Disagree.

This is the continuation from another thread where another RL’er called him out on the same thing. He always circles back to the same argument: a judgement on whether others can afford “to write the check” like he can. It’s ridiculous.

On this leasing topic, it’s not a function of affordability. It’s a function of maximizing your equity, especially since your tax obligation is minimal unlike paying cash or financing.

And you can do this regardless of what state you live in. The only exception would be those states which tax the entire lease upfront.

Did someone pee in your Cheerios this am? I’ve made no underhanded comments or assumed anything negative about anyone.

Its rs a simple discussion about leasing vs buying. Not quite sure why you are taking it so personally. Others seemed to be able to have a logical and polite conversation about the subject at hand without getting their panties in a bunch. Not sure why you can’t.

As a target of his comment, I’m not offended. I can’t write a check for one. But understood his point.

Thank you. There is hope for humanity in that two people can have a conversation on the internet without offending each other. . Cheers.

i would check with your accountant. Some are very hesitant to keep a high end car on the books as a car payment for fear of triggering an audit. Don’t get me wrong people do it all the time but there is a risk involved with it.