My 2 year lease should be around 50k. Maybe the 68k example was for a heavily optioned car without a discount.

 

I got that wrong.

It was a 3-yr. lease for up front $68,000 and 7,500 miles per year.

Still, that seems very high to me.

 

Does sound high but if he has a business then leasing most likely provides a better deduction which in the end probably makes it cost less than financing/paying cash. That is how my situation is at least.

 

A three-year lease makes more sense.

As for business deductions for leases, there really is no tax benefit, according to my accountant. If you own a car personally, you get to depreciate it and thus pay less income tax as the car's value lessens. If you lease the car, then only a percentage of the cost of the lease is deductible. It's pretty much a wash, tax-wise. But I'm not an accountant so if I'm factually incorrect, any accountants among us please feel free to correct me.

 

The math my accountant and I did showed that deducting the lease payments would provide more savings than depreciating the car. I use it for 80% business though so for my situation leasing is better. There's also a lease inclusion amount for "luxury vehicles" but its not that much.

A 3 year lease is probably cheaper but I want out when 991.2 rolls around in about two years.