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XBX_X on scored.co
10 months ago1 point(+0/-0/+1Score on mirror)
Another one for a business is a Section 179 Deduction: *"Allows businesses to deduct the full purchase price of qualifying equipment (including certain vehicles) in the year they are placed in service, instead of depreciating them over several years."*
This is why you can find brand new luxury cars purchased in December for sale as pre-owned in January. Business owners buy a car (or cars) for the total amount they're expected to owe in taxes for that year, then sell it back to the same dealer for a few grand off. They get thousands off their tax bill in exchange for losing a few pennies in "depreciation" on the vehicle. They don't even bother registering the vehicle because they get 30- or 90-day temp tags from the dealer. Some don't even take the car off the dealer lot.
The dealer agrees to this because December is one of the slowest months of the year, but they're still expected to sell cars regardless. These "179" deals help the dealer put "points" up on the board to meet quotas and earn bonuses, while giving them fresh inventory of "used" cars they can sell to CarMax or auction for a profit in January, another very slow month. Dealers hate new cars; all the profit is in used cars.
This is why you can find brand new luxury cars purchased in December for sale as pre-owned in January. Business owners buy a car (or cars) for the total amount they're expected to owe in taxes for that year, then sell it back to the same dealer for a few grand off. They get thousands off their tax bill in exchange for losing a few pennies in "depreciation" on the vehicle. They don't even bother registering the vehicle because they get 30- or 90-day temp tags from the dealer. Some don't even take the car off the dealer lot.
The dealer agrees to this because December is one of the slowest months of the year, but they're still expected to sell cars regardless. These "179" deals help the dealer put "points" up on the board to meet quotas and earn bonuses, while giving them fresh inventory of "used" cars they can sell to CarMax or auction for a profit in January, another very slow month. Dealers hate new cars; all the profit is in used cars.