Seniors / Madan sir
I am a bit confused with the below options of buying a car;
1. New car leased under my company's name
2. Used car purchased (budget around 5K $) under either my company's name or my name
I would like to know which one of this would fetch me more tax savings and also value for money, the intent of buying the car is just for city run and will be seldom used for longer runs and I would be the only one driving it around.
What I understand with new car is;
Pros;
1. Brand new car - so no maintenance
2. Lease - hence possibly lower EMI
3. Tax benefit - EMI could be deducted from the income that is computed for tax (but I am not sure)
4. Latest technology at disposal
Cons;
1. Higher insurance
2. You DON'T own the car
What I understand with used car is;
Pros;
1. Cheap
2. Lower insurance
3. You OWN the car
Cons;
1. Higher maintenance - possible breakdowns
2. No latest technology at disposal
3. "Used" car.... ;D
I would appreciate all the responses and thanks for your time.
-B
I am a bit confused with the below options of buying a car;
1. New car leased under my company's name
2. Used car purchased (budget around 5K $) under either my company's name or my name
I would like to know which one of this would fetch me more tax savings and also value for money, the intent of buying the car is just for city run and will be seldom used for longer runs and I would be the only one driving it around.
What I understand with new car is;
Pros;
1. Brand new car - so no maintenance
2. Lease - hence possibly lower EMI
3. Tax benefit - EMI could be deducted from the income that is computed for tax (but I am not sure)
4. Latest technology at disposal
Cons;
1. Higher insurance
2. You DON'T own the car
What I understand with used car is;
Pros;
1. Cheap
2. Lower insurance
3. You OWN the car
Cons;
1. Higher maintenance - possible breakdowns
2. No latest technology at disposal
3. "Used" car.... ;D
I would appreciate all the responses and thanks for your time.
-B
