100% Bonus Depreciation Is Back: What LHPH Dealers Need to Know

As of July 4, 2025, the new federal tax bill has officially restored 100% bonus depreciation on qualifying business property, including used vehicles placed in service after January 20, 2025.

This is a major win for independent dealers running Lease Here Pay Here (LHPH) programs. The previously planned 40% phasedown is gone—dealers can now fully expense eligible vehicle costs in the year of acquisition through 2029.

Key Benefits for LHPH Dealers

• Full deduction on used vehicle purchases
• Improved cash flow and lower taxable income
• Increased capital for inventory and growth
• Applies only to LHPH, not BHPH structures

Timing and Structure Matter

To take full advantage of this tax provision, dealers should:

• Ensure assets are placed in service after January 20, 2025
• Work with a CPA to align leasing and entity structures
• Use a DMS that supports compliance and accurate reporting

DCS Helps Dealers Maximize This Opportunity

Dealer Controlled Solutions supports independent dealers with a platform built for LHPH success. We help align your operational workflows with financial strategies that take full advantage of new tax laws.

From lease structuring to inventory planning, our tools are built to increase ROI and help you stay ahead.

Book a demo to learn how DCS can support your dealership.

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