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Enjoy the Rewards of an Impressive Tax Advantage

Buying a new vehicle near Los Angeles doesn’t just offer luxury, it also delivers financial opportunity. The right strategy can unlock a tax advantage that helps offset costs and maximize investment. 

Why Tax Advantage Matters

A key driver of this advantage is the luxury car depreciation limit set by the IRS. Usually, high-end, new vehicles may hit this cap faster, but the Land Rover brand’s classification lets you accelerate deductions:

  • First-year bonus depreciation: Eligible models may qualify for 100% first-year depreciation, further reducing taxable income.
  • Section 179 election: You can elect to expense a large portion of the vehicle’s cost in the purchase year.

Ongoing luxury car depreciation limit allowances let you claim deductions within statutory depreciation tiers, reducing tax liability over time. You can deduct up to $30,500 for the purchase plus up to 60% of the purchase price for qualifying vehicles.

This layered approach amplifies the overall tax advantage compared to standard cars. For many Marina Del Rey buyers, it’s about carving out a luxury budget and optimizing tax efficiency.

Understanding Luxury Tax Exemption

In select states or federal limits, models may qualify for a luxury tax exemption, providing additional relief from certain fees or taxes:

  • May waive specific luxury or “ad valorem” taxes during registration
  • Can reduce upfront costs, particularly in states with steeper luxury vehicle levies
  • Should be combined with depreciation and deduction strategies for maximum impact

A luxury tax exemption can make vehicle ownership significantly more affordable over time, especially for businesses considering fleet purchase or asset acquisition models.

Tactical Steps To Maximize Your Advantage

  1. Confirm Eligibility: Ensure your model meets IRS heavy vehicle thresholds and state exemption criteria.
  2. Apply Section 179: Use this to claim your deduction in the first year.
  3. Utilize Bonus Depreciation: Eligible vehicles may get accelerated write-offs.
  4. Plan Around Depreciation Limits: Track the luxury car depreciation limit each year to avoid disallowed deductions.
  5. Leverage Local Exemptions: Investigate your state’s luxury tax exemption rules.

With this framework, your tax advantage becomes a structured approach, not guesswork.

Learn More at Land Rover Santa Monica

By combining immediate deductions, statutory depreciation, and state-level tax breaks, savvy Marina Del Rey buyers can unlock the full tax advantage. If you have any questions, contact us, or stop by our finance center in Santa Monica, near Malibu. 

$93,800 Range Rover* VS. $93,800 Luxury Car

Total allowable depreciation for the 1st year of ownership*


Range Rover VS. Luxury Car

Range Rover¹

100%

Depreciation

$93,800

Luxury Car²

20%

Depreciation

$18,200

VIEW RANGE ROVER INVENTORY

$70,900 Range Rover Sport* VS. $70,900 Luxury Car

Total allowable depreciation for the 1st year of ownership*


Range Rover Sport VS. Luxury Car

Range Rover Sport¹

100%

Depreciation

$70,900

Luxury Car²

26%

Depreciation

$18,200

VIEW RANGE ROVER SPORT INVENTORY

$55,000 Land Rover Discovery* VS. $55,000 Luxury Car

Total allowable depreciation for the 1st year of ownership*


Land Rover Discovery VS. Luxury Car

Land Rover Discovery¹

100%

Depreciation

$55,000

Luxury Car²

32%

Depreciation

$17,180

VIEW DISCOVERY INVENTORY

$48,700 Land Rover Defender 90* VS. $48,700 Luxury Car

Total allowable depreciation for the 1st year of ownership*


Land Rover Defender 90 VS. Luxury Car

Land Rover Defender 90¹

100%

Depreciation

$48,700

Luxury Car²

33%

Depreciation

$16,140

VIEW DEFENDER 90 INVENTORY

$51,500 Land Rover Defender 110* VS. $51,500 Luxury Car

Total allowable depreciation for the 1st year of ownership*


Land Rover Defender 110 VS. Luxury Car

Land Rover Defender 110¹

100%

Depreciation

$51,500

Luxury Car²

32%

Depreciation

$16,500

VIEW DEFENDER 110 INVENTORY

Individual tax situations may vary. Information accurate at time of publication. Federal rules and tax guidelines are subject to change. Consult your tax adviser for complete details on rules applicable to your business.

**The Range Rover. Range Rover Sport, Land Rover Discovery. Land Rover Defender 90 and Land Rover Defender 110 have gross vehicle weight ratings (GVWR) greater than 6,000 pounds and are classified as heavy SUVs. As such, these vehicles can be fully depreciated in the firs1 year of ownership when used for business 100% of the time. GVWR is the manufacturer’s rating of the vehicle’s maximum weight when fully loaded with people and cargo. See your local authorized Land Rover Retailer for details.

* Comparisons based on Sections 179 and 168(k) of the Internal Revenue Code, which allow for additional first year depreciation for eligible vehicles and reflect figures for owners who purchase vehicles for 100% business

* Price comparison figures are calculated using the Base Manufacturer’s Suggested Retail Price for the 2022 Range Rover Standard Wheelbase, 2022 Range Rover Sport SE, 2022 land Rover Discovery 2.0L S, 2022 Defender 90 Base and 2022 Defender 110 Base. Price excludes $1,350 destination/handling charge, tax, title, license, and retailer fees, all due at signing, and optional equipment.

Vehicles can be New and Certified Pre-Owned.

  1. Range Rover, Range Rover Sport, Land Rover Discovery, Land Rover Defender 90 and Land Rover Defender 110 are fully depreciated in year one.
  2. Luxury car depreciation can continue year two at $16,400, year three at $9,800 and $5,860 per year for each succeeding year until the vehicle is fully depreciated or sold.
  3. Luxury car depreciation can continue year two at $14,688, year three at $8,813 and $5,288 per year for each succeeding year until the vehicle is fully depreciated or sold.
  4. Luxury car depreciation can continue year two at $13,024, year three at $7,814 and $4,689 per year for each succeeding year until the vehicle is fully depreciated or sold.
  5. Luxury car depreciation can continue year two at $13,600, year three at $8,160 and $4,896 per year for each succeeding year until the vehicle is fully depreciated or sold.

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Land Rover Santa Monica 34.0366906, -118.4693878.