Eyo Toe | April 1, 2021
Depreciation allows dealers to defer tax liability, giving them more control over their finances while maximizing profits. By leveraging depreciation, you can reduce taxable income and spread out tax obligations over the course of the lease term, which helps improve cash flow and profitability.
In a leasing model, the asset’s depreciation is accounted for over time, meaning dealers can defer taxes on that portion of the vehicle's value while still collecting regular payments from customers. This tax advantage, combined with the ability to structure leases that align with customer affordability, makes leasing a powerful tool for dealers looking to optimize both their financial performance and customer satisfaction.
Curious how depreciation could boost your leasing program’s success? Dive into the benefits of leasing and discover how it can help you defer tax liabilities while keeping profits strong.
Read the full article in BHPH Magazine.
