In today’s B’s Finance Minute, let’s talk about leasing a vehicle. Did you know that if you are Self-employed and even if your company pays the lease payments, banks will still deduct that car payment from your loanable amount?
It can possibly reduce your Pre-approval amount by $100,000 or more. If you own a company and the vehicle is being used for your business, you should do what my client did:
He told the manager he will only get the vehicle if the lease is under his company name and to make sure it does not show up on his credit history. He told them he is prepared to walk away and find another dealer who can do this. It took them about an hour to figure the best way to do it but they did and he asked for something in writing from the manager stating that it will not show up on his personal credit history.
Now my client was free to purchase two rental properties because he doesn’t have any debts showing up in his personal name aside from his mortgages.
I hope this made a difference, please like and share to help other business owners too!