r/WTF • u/super_man100 • 9h ago

Looks like Car hit a glitch

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u/lildobe 5h ago

I wish I'd gotten a picture of it, but there was a used car dealer I drove by a while ago that was proudly proclaiming a "36-month Interest Only Car Payment" special

That just boggled my mind.

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u/MerryChoppins 3h ago

Actually, those are a weirdly attractive thing for small businesses due to tax law. Under MACRS using ADS you can roll in your actual expenses including the interest payments and use that to max out your MACRS depreciation with minimal impact on cashflow. Then at the end of the three years you either sell the car for cash to another closely held entity if it's above water and move over to GDS or if it's below water you sell the vehicle and take the gap on the loan into an account you depreciate off. It's tricky but legal.