4 ms·

There was a business in the UK doing this but didn't work out any cheaper than a regular rental from Enterprise. Economy of scale at such a level is hard to bea

• KennyBlanken 3y ago
  It's not economy of scale - they get to write off depreciation at a much higher rate than the cars actually depreciate. This is true of all businesses and all capital. It's a great big tax cheat, centered around companies getting to claim that their capital is worthless after just a few years.
  • votepaunchy 3y ago
    How is this a “tax cheat” and not simply a tax deferral? Businesses can deduct expenses, and accelerated depreciation is not increased depreciation.
  • IshKebab 3y ago
    How would that actually help long term though? Imagine they write off their entire entire fleet in 1 year. Yes they pay less tax that year, but in future years when they sell their old cars that are worth nothing for lots of money they'll have a load of extra tax to pay. I can see how it lets you move tax around in time a bit but that's it (and it's often allowed explicitly anyway). Am I missing something or is this the common "tax write-off = magical money" misunderstanding?
    • graemep 3y ago
      On top of that the business referred to was a UK one and that means max 18%/year on ICE cars (6% if high CO2 emissions).