Actual Car Expenses
- Registration fees
- Lease payments
- Depreciation
- Repairs
- Gas and oil
- Garage rent
- Parking fees
- Tolls
- Tires
Leasing Lingo
Acquisition Fee A fee charged to the lessee to start a lease, which generally begin in the $400 to $500 range.
Closed-End Lease In this lease, the residual value (value of the vehicle at the end of the lease) is estimated and agreed upon in advance by you and the dealer. At the end of the lease, you won’t have to pay extra (or will receive a refund) if the car turns out to be worth less or more than the agreed upon price.
Disposition Fee A fee charged when you return your vehicle at the end of the lease, typically $350, that covers the dealership’s cost to dispose of the vehicle.
Early Termination Fee A fee charged when you end the lease before the agreed upon term is up. According to Consumer Reports, this fee can be almost as expensive as finishing out the contract. Continue reading “Before claiming any deductions, be sure to review IRS guidelines and speak to a tax professional”