Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 9 years ago on . Most recent reply

User Stats

36
Posts
1
Votes
Alex Ballas
  • Real Estate Professional
  • Philadelphia, PA
1
Votes |
36
Posts

Sell nice car and buy used, or keep as business deduction?

Alex Ballas
  • Real Estate Professional
  • Philadelphia, PA
Posted

Purchased a quadplex, and an looking over finances.

I bought a 2012 Audi A4 new, payments around 500 /mnth.  I still have 20K left.

I am looking at a used 2010 prius for 10K.

Question for the group- should I just keep making payments on the Audi and deduct what I can (about 80% business), or sell and get the Prius in cash and lose the monthly payment?

Thinking strictly financially here, is there any financial benefit to giving up my car?  I have been deducting expenses over the last few years, and it is a nice car, but will i see any cost benefits from buying a used car instead?  It is expensive to maintain, but can I just keep writing off the expenses? 

I am sure there are other who have been in the same position, would appreciate your thoughts.

Most Popular Reply

User Stats

803
Posts
689
Votes
Jake Thomas
  • Residential Real Estate Agent
  • Grand Rapids, MI
689
Votes |
803
Posts
Jake Thomas
  • Residential Real Estate Agent
  • Grand Rapids, MI
Replied

@Alex Ballas I have 2 mortgages that are less than $500/month including taxes & Insurance and both of those properties rent over $1,300/month. 

Let me think about this, keep a car that is losing lots of value every year and has payments that are excessive while starting my investing career or keep it and write off the cost? 

Sell the car buy something with cash and buy another property. 

If you had the choice to buy another rental that actually made money or a nice car with the exact same payments as the rental which would you pick? 

Loading replies...