When you’re shopping for a vehicle at Folsom Lake Ford, there’s so much to consider. Are you considering financing or a Ford lease? There are lots of things to keep in mind, including your tax benefits, when making your decision.
Leasing vs. Buying
There are benefits to both buying and leasing. However, it’s important to understand the difference between the two to determine your best option.
- Buying: To buy a vehicle, you must pay for the vehicle’s total cost upfront or secure an auto loan. If you secure a loan, you’ll be responsible for paying monthly payments until it is paid in full. Then, you own the vehicle.
- Leasing: When leasing, you are responsible for covering the depreciation of the vehicle’s value during your lease. Again, you can pay upfront or get a loan. However, once your predetermined term is over, you must return the vehicle to the dealership or purchase it.
When filing your taxes, you can claim a leased vehicle or financed vehicle just the same. This includes deducting your sales tax. The deductions are most notable for a business owner or anyone self-employed. If you use the vehicle for work, you may be able to deduct its operating expenses, including maintenance and fuel costs.
Electric Vehicle Tax Credits
If you drive an electric vehicle, there are different benefits, including a tax credit is up to $7,500. Of course, there are lots of factors that affect the credit. Keep in mind, when you lease a vehicle, the electric vehicle tax credit will go to the manufacturer, instead of you. However, the state of California also has rebates available to people who buy or lease an electric car.
Still have questions? Contact our Ford dealership in Folsom, CA today – we’d love to help!