Things to Keep in Mind When Leasing Vehicles for Business

There are unsurprisingly both pros and cons to leasing vehicles for business purposes, as there are to buying them outright. The decision to buy or to lease a vehicle for business is therefore one that shouldn't be rushed and there naturally a number of things to keep in mind when deciding whether to buy or to lease.Should you buy or lease?

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Every business has different vehicular needs, though that isn't all you need to consider. Here are a few things to take note of when deciding whether you should buy or lease a vehicle for business.

1. If you buy a vehicle you'll own an asset and equity once you've repaid it. This isn't the case with lease arrangements. 
2. Leasing a car enables you to change cars every few years and drive a new car. This helps to better convey a positive impression of your business. 
3. Leasing a car is more cost competitive in the short term as there are lower upfront costs and you won’t bear the full weight of the vehicle’s depreciation. 
4. When you buy a vehicle for business you have greater branding options, lower insurance premiums and no restrictions, mileage, etc. 

 These are just a few of the many important considerations to take note of when deciding whether to buy or lease a vehicle for your business organisation.

Decided to lease a vehicle for business? A few things to bear in mind

If you've gone through your options thoroughly and you've decided that leasing is the better option you’re not out of the woods just yet as there are still a few things that you need to bear in mind.

• The need to negotiate

Before you pay a visit to a vehicle leasing firm you need to do your homework so as to have an understanding of what leasing rates, terms and conditions are like and to be able to negotiate more effectively.

Bear in mind that you can often negotiate more than the rate to sweeten the deal.

• The need for short term leases

Vehicle leasing, as a general rule, only proves more cost effective than buying if you opt for a short term lease – a long term lease will cost you more as you’ll bear the full weight of vehicle depreciation, plus you can drive around in a new vehicle which also has its advantages.

• The need to understand restrictions

There are a number of restrictions commonly applied to leased vehicles, most notably mileage restrictions.

As a result, you need to understand your business needs, for instance the number of miles you’re likely to travel in a year as it might prove beneficial for you to pay for a higher mileage cap.

• The need to understand your options

There are generally a number of options available to you, with some leasing firms making available more and others less.

These could include early exit fees – these are important and can help to mitigate risk – and you must also make the effort to understand any benefits, including tax benefits, which might be available to you that can help to make vehicle leasing an astute choice.

About the Author: Scott Shriver is writing freelance for a company in the UK who enables customers to run quotations and order online. Leasing Options Ltd is one of the leading providers of vehicles for lease in the country.

Posted in: Leasing Vehicles