Monthly payment is only one line.
Compare the same vehicle and cash price, cash due at signing, financed amount, number and timing of payments, fees and any balloon, residual or purchase option. Separate refundable deposits from nonrefundable charges. Include applicable taxes, delivery, insurance and operating costs without counting an item twice. A payment factor is not automatically an annual interest rate.
Tax treatment needs its own review
Financing does not by itself determine a deduction. Ask your tax adviser about ownership for tax purposes, qualifying property, business use, the placed-in-service date, Section 179, depreciation or bonus depreciation, applicable limits and state treatment. A signed purchase agreement alone is not the same as equipment ready and available for use. Changes in business use or a sale may cause recapture. No deduction or tax savings are promised.
Take these questions to the conversation
- What is the total contractual obligation, including final payments?
- What is due before funding, and what could change?
- Can I get a sample settlement calculation for my planned replacement date?
- Who owns the vehicle, what collateral is pledged and who guarantees it?
- Which credit checks and account reporting apply to this specific program?
- What conditions remain after approval, and where are documents submitted securely?
For tax background, see IRS Publication 946. This education is not tax, legal or accounting advice.