I was wondering what the meaning of 'other than' would be in its context in the following paragraph.

"If he buys the car from the company after two years, this may be a cost-effective way of financing a car purchase other than out of taxed income."

Any and all help would be appreciated.

  • "Other than" kind of mean "as an alternative to", or "as another option". The sentence is saying that buying from the company is an alternative to paying straight from your bank account, so to speak. – ralph.m Nov 22 '15 at 23:38
  • Assuming that the final user of the car is the owner of the company, he may either buy his car on his own money (after having being taxed on his income) or his company buys the car for him and, after 2 years, resells it at a lower price taking into account the depreciation. – Graffito Nov 22 '15 at 23:38
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    That sentence sounds awfully awkward to me. I think it's poorly worded in to begin with. – David Blomstrom Nov 23 '15 at 1:32
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    Yeah, the sentence is very poorly worded -- I'm not entirely sure what it's supposed to mean (or how it results in a tax benefit). – Hot Licks Nov 23 '15 at 2:42

The sentence is phrased awkwardly. What it means is that, besides financing a car purchase from taxed income, financing a car purchase from "buying the car from the company after two years" is just as cost effective.

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  • Somewhat off-topic, but why is financing a car purchase from taxed income cost effective? Is this something specific to US tax law? – TrevorD May 21 '16 at 13:44
  • @TrevorD - The implied tax benefit is nonsense, but it's not unusual for people to do things for such bogus reasons. – Hot Licks May 21 '16 at 17:32

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