There's a long-standing debate about whether to buy or lease a car. Each option has its own pros and cons. The best choice depends on personal needs, preferences, and finances.
Real estate mogul Grant Cardone makes it clear: lease all but one car.
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“There’s only one car you buy, and the rest you lease,” Cardone stated in a YouTube video.
Cardone bought a specific vehicle and shared his reasons.
“$150,000 Range Rover. It weighs 6,000 pounds. Section 179 of IRS says anything over 6,000 pounds, you can write off 100%. You could buy it on December 31, write it off that year, even though you didn't even drive the car,” he explained. “Boom! $158,000 you get to write it off, that day, against your earned income, if you have self-employment money, or an LLC producing other income.”
He practices what he preaches.
“I would pay cash for the Ranger Rover — we did,” he revealed.
Cardone, who often travels on a Gulfstream G650ER, also leases cars. He has a Rolls Royce Cullinan, starting at around $392,000.
Leasing also brings tax benefits.
“The Cullinan that I have is a leased vehicle. I leased it with no money. I put it on a 24-month lease — never longer than that. Whatever the payment is, if you can't handle that payment, don’t do it. And then every 24 months I trade that car in. Why do I do a lease rather than own? Because I can write off 100% of that lease payment every month against my business income,” he elaborated.