Tax Day Cometh: You May Be Able to Deduct Interest on Your Car Loan

April 15th, tax day, looms closer and closer. If you’re self-employed, or have a side-gig, such as making deliveries or driving for Uber, you might want to check if you can deduct vehicle expenses from your Self-Employed taxes.

To do this, you first calculate how many miles you drove all year. Then you choose between taking the standard rate, or the actual expenses you incurred with your car. To do this, figure the percentage that was personal driving, and how much was for business. Say you drove 100 miles a week, and 40% was for business. That’s the percentage of car expenses you can deduct. Keep in mind, driving to your work place is commuting, so that’s not deductible, but driving to do business banking or buy supplies is deductible Buy Here Pay Here Car Dealership el paso TX.

The average standard rate for 2018 is 54.5 cents per mile. So if you drove 40 miles a week for work, you would deduct $21.80 per week for your standard rate.

Or, you could deduct your actual car expenses.  These include: depreciation (amount you can deduct over time for general wear and tear of the vehicle), registration and property tax fees,  parking and tolls, new tires, maintenance and repairs. As well, you can write off registration, taxes, & licenses. Compare and see which number is bigger, and choose that as your deduction.

One car expense that’s deductible with both of these methods is the interest you paid on your car loan. This is often a significant expense, especially with a Buy Here Pay Here Loan. Keep this in mind when borrowing money to pay off your loan – you are self-employed, the interest is tax deductible. Ask the business department at Finn’s Discount Auto when you purchase a car, and make sure and tell your tax person that you have deductible interest on your car.

Why Buying a Used Car is Better Have that New Car Scent, and Still Be $14, 989.39 Ahead

If you’re shopping for a car, there are many reasons to choose a used car over a new one. The first is cost. Along with actually paying more for the new car, you’re also paying more in sales tax. As well, it costs more to insure it every month, as well as register it every year.  And cars don’t increase in value the way real estate often does. In fact, they depreciate, rapidly. Which means you lose 20% of the value from the moment you buy it.

According to Kelley Blue Book, the average cost of a new car in 2018 was over $30,000.00.  (Along with the highest prices yet for new cars, Forbes reports that missed payments have gone up as well.) Due to depreciation, or the fact that once you drive your car off the lot, it’s no longer new, you’ve lost $6000.00 right there. You are immediately underwater, and owe more than your new car is worth- on the first day you own it. And within three years, that car has depreciated to a value of $15,000.

When the owner of the new car sells it, and you can buy it, you are beneficiary of this depreciation. The original owner has absorbed it. Even if you’re buying from a used car lot, you’re still benefitting.  And a used car depreciates less drastically. If you buy that car for $15,000.00, and then sell it in three years, you can probably get $10,000.00 for it. So the difference is substantial. You can also research cars that hold their value- we have a blog post on this you can visit here.

What is often missing when purchasing a used car is that new car scent everyone seems to like so much. But you can buy that at Home Depot for $10.61. And still be $14, 989.39 ahead.

Buying a Car To-Do List How to prepare for buying a used car - Finns Discount

Tax returns are arriving, and while you have a nut, it’s a great idea to put it towards a large purchase, like buying a car. At Finn’s Discount Auto, we have a wide range of great cars right now. Before coming in, make sure you’ve done your homework on purchasing a car so that you have a good experience and get the car that’s right for you.

Know What You Want

Are you going to drive for Uber? Then you’ll need a backseat. Do you have a large, or growing family? Then maybe a Mini-Van is your best option. Do you plan on using for hauling. Pick-Up truck is the obvious answer. Take time to evaluate your needs, now and in the future. Aim for a vehicle between those two places. You can also research car prices by checking Kelly Blue Book, Edmunds, and NADA Guides.

Features Wish List

Decide what your deal breakers are. Do you have to have four-wheel drive or manual transmission? What about power windows, heated seats, or screens that show you obstacles behind you when backing up. Are you flexible on car colors? Knowing what you want, but can live without will help narrow down your shopping.

 

Financing

Even with a substantial down payment, you will most likely financing to purchase a car. Check your credit score to see if banks will finance you. If not, a Buy Here Pay Here dealership is your best, and probably only option. By making a large down payment, you will save on interest in the long run. As well, with Buy Here Pay Here, you’ll have financing and shopping in the same place.

 

Ask Questions at the Dealership

Ask your car salesperson about mileage, the engine, gas mileage, maintenance and other pertinent facts about the wear and tear on the vehicle.

Why Buying a Used Car is Better Have that New Car Scent, and Still Be $14, 989.39 Ahead

If you’re shopping for a car, there are many reasons to choose a used car over a new one. The first is cost. Along with actually paying more for the new car, you’re also paying more in sales tax. As well, it costs more to insure it every month, as well as register it every year.  And cars don’t increase in value the way real estate often does. In fact, they depreciate, rapidly. Which means you lose 20% of the value from the moment you buy it.

According to Kelley Blue Book, the average cost of a new car in 2018 was over $30,000.00.  (Along with the highest prices yet for new cars, Forbes reports that missed payments have gone up as well.) Due to depreciation, or the fact that once you drive your car off the lot, it’s no longer new, you’ve lost $6000.00 right there. You are immediately underwater, and owe more than your new car is worth- on the first day you own it. And within three years, that car has depreciated to a value of $15,000 Used Car Dealers in El Paso tx.

When the owner of the new car sells it, and you can buy it, you are beneficiary of this depreciation. The original owner has absorbed it. Even if you’re buying from a used car lot, you’re still benefitting.  And a used car depreciates less drastically. If you buy that car for $15,000.00, and then sell it in three years, you can probably get $10,000.00 for it. So the difference is substantial. You can also research cars that hold their value- we have a blog post on this you can visit here.

What is often missing when purchasing a used car is that new car scent everyone seems to like so much. But you can buy that at Home Depot for $10.61. And still be $14, 989.39 ahead.

Like a Virgin Buying Your First Car

You’ve saved and saved until you just can’t wait a moment longer- you need your first car. Perhaps you’re practical want a sedan to get to church and school, or you need a truck for work, or just want to drive fast in something sexy. There are some general rules that everyone can use to choose the best first Cars For Sale El Paso. 

Establish a monthly budget

For many of us, there is a vast chasm between what we want, and what we can afford. Take a realistic look at your budget so you know how much you can spend on payments, insurance, gas, and maintenance. You don’t want to fall behind on car payments, or your car can berepossessed and you’ll lose your down payment and everything you’ve paid so far.

Take an Honest look at What Your Life is Like Now, and What You Want it to Look Like

Your car should land right between these two points. Are you planning on having children soon- then a two door sports car or small pick-up truck probably isn’t right for you. Do you plan on changing jobs in the near future? If so, how far might your commute be? And will you want to make a little extra money on the side driving for Uber or Lyft? Then take a look at their guidelines for what’s required in a car. While cars are utilitarian, they are often emotional purchases, so take some time and be realistic with yourself about what’s really best for you.

Locate Financing and the Right Dealer

If you’re buying a new car, you will often need bank financing. When buying a used car, many dealerships offer Buy Here Pay Here loans. If you haven’t established credit yet, or have bad credit, this is your best bet for financing. Ask to take a test drive. Make sure you are comfortable in the car, start and stop, merge onto a freeway, and get to know the car and make sure it’s a perfect fit before you purchase it.

Why Buying a Used Car is Better Have that New Car Scent, and Still Be $14, 989.39 Ahead | Finns Discount Auto

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If you’re shopping for a car, there are many reasons to choose a used car over a new one. The first is cost. Along with actually paying more for the new car, you’re also paying more in sales tax. As well, it costs more to insure it every month, as well as register it every year.  And cars don’t increase in value the way real estate often does. In fact, they depreciate, rapidly. Which means you lose 20% of the value from the moment you buy it.

According to Kelley Blue Book, the average cost of a new car in 2018 was over $30,000.00.  (Along with the highest prices yet for new cars, Forbes reports that missed payments have gone up as well.) Due to depreciation, or the fact that once you drive your car off the lot, it’s no longer new, you’ve lost $6000.00 right there. You are immediately underwater, and owe more than your new car is worth- on the first day you own it. And within three years, that car has depreciated to a value of $15,000.

When the owner of the new car sells it, and you can buy it, you are beneficiary of this depreciation. The original owner has absorbed it. Even if you’re buying from a used car lot, you’re still benefitting.  And a used car depreciates less drastically. If you buy that car for $15,000.00, and then sell it in three years, you can probably get $10,000.00 for it. So the difference is substantial. You can also research cars that hold their value- we have a blog post on this you can visit here.

What is often missing when purchasing a used car is that new car scent everyone seems to like so much. But you can buy that at Home Depot for $10.61. And still be $14, 989.39 ahead.