Is it good time to lease a new vihacle?

Question

Hi

I have 5 properties with my wife.

our debt service ratio is about 43% 44% With the car payment and about 41% 39% without the car payment.

We currently have a vehicle But it is old, unreliable, and high consumption. In payment wise, we will end up spending $500 more per month but what we are worried about the most is the Debt service ratio to work on further investments.

we are certain that the new vihacle will make us happier and comfortable but still debating.

whats your opinion?

thank you

Alecia Loveless · Answer

@Jay Cho Leasing vehicles is generally just a waste of money. You will pay $4-800 a month for it and 3 year later own nothing. I would follow Dave Ramseys advice here and recommend buying something nice and used for cash that you can afford that is better and more reliable than what you have. Most of the recommendations I see are for either a used Honda or Toyota or a used Lexus if you want luxury because it is Toyotas luxury brand and will last easily 150,000 miles if properly maintained and serviced.

Theresa Harris · Answer

I'd just buy a vehicle.  You can always claim mileage on your taxes if you use it for business purposes.

Jay Cho · Answer

Thanks I heard that I can claim 100% of the leasing car for my rental property if it is used as a business purpose. What do you think about it?