I have the credit and the money to lease one, here is my delimma, I own a 2017 Honda fit that i am upside down in, i owe 18500 and the car is literally worth 9500.
I pay 450 dollars for a car that sucks because of this because i traded in another car and got upside down, the people at the dealership didnt tell me...
"which i can afford because I can reimburse myself from my business for my business percent usage of the car- which i am not able to now because of me being in a finance loan instead of a lease"
- your statement doesn't make sense
If you are a corp (not an LLC):
-Regardless whether the car is leased or owned, you can use the standard mileage rate or actual expenses to determine your deduction at the corporate level.
-Additionally, when you take it down to the employee reimbursement you can use the standard mileage rate or actual expenses (as long as it's an accountable plan). If it's a non-accountable plan, then the reimbursement is imputed income to you.
If you are a sole proprietorship
- with either a loan or a lease because you are the business, you can't "reimburse" yourself.
- but with a loan or a lease, when determining your business expenses deduction, it can either be the standard mileage rate or the actual expenses.
That said In the State of CA, unless there is some kind of liability with your company, I hope you are a sole proprietorship. California LLC or corporate taxes SUCK.
But going back to the actual cars:
- if your car is financed, you are required to have liability, collision, and comprehensive coverage on your car. So why not file the claim and get it fixed.
- EXCEPT you aren't covered if Mom constantly drives the car and you haven't notified your insurance company (or you aren't on the same policy). You have done this, right? Because there is a lot more liability you face than just some dings on a cheap car. if you haven't.
And it really seems like your eyes are bigger than your pocket book
"I live in Los Angeles, and I have saved money to own a home" HUH? You told us you have saved $8000. That isn't going to buy you a small bathroom.
You cannot finance a car without carrying full coverage insurance. Therefore the Honda should have been fully repaired to as-new cosmetic condition with an insurance settlement after being dinged up. So why haven't you done that? It will be worth more money and it shouldn't cost more than the deductible to have it repaired. Something is very wrong here. What aren't you telling us? What other stupid things have you done?
Putting that question aside, if your vehicle is really worth $9,500 as a trade-in, and if you only have $8,000 in cash saved up, that still leaves you $1000 short of paying off the loan and leaves you zero money for the down payment on a lease or another purchase.
A new Evoque has a base price of $41,800 and will cost about $48,000 out the door with sales tax, licensing, dealer prep fees etc. No bank in the country will loan that much for a 22 year old kid to lease a vehicle with limited credit and employment history unless he can make a down payment of about $10,000, has credit in the neighborhood of 750 or more, and can afford payments in the neighborhood of $800 a month, not including insurance or operating costs. . You don't have that and won't have that because all your cash and trade-in value will be used paying off the other loan. You would also need to be earning at least $1000 per week after taxes.
You're still very young and very dumb. Even if you want to buy or lease a used Evoque, you still don't have any money to finance it with, so stop living in a dream world, tuck your ego back into your pants and zip up. Get the Honda fixed and use your cash to start making double or triple monthly payments and get it paid off ASAP. In the mean time, reap the benefits of good gas mileage, which you need if you've put 35k miles on it in only 2 years. At 10 mpg difference, the Evoque will add $700 a year to your gasoline cost.
This is one of those "when you're in a hole, stop digging" moments. First, don't roll the extra $baggage into yet another car. You've seen what it does to your ability to unload a car already, you don't need to see it again. Tough it out until you've saved up enough to get away clean. Second, buy smarter, as in don't get a Range Rover just because you want something nice now. Keep your cash drain low and you'll be able to put that money to work instead of just preening.
They have a PISS-POOR maintenance record ............................