buy or lease a car
Business

Should You Buy or Lease A Car? Explained

Decision of buying something after analysing all the pros and cons is absolutely a good way. Car leasing is one of such decisions need to be make after comparing all the pros and cons. After so many years and increasing popularity of commercial car on lease, the option definitely is of so many benefits.

You need a new company car. Should you buy or lease? A lease service should be favoured if you only expect to use the vehicle for three years or less. And, this is a wonderful deal when it comes to finalising commercial car on lease. However, more time you spend with a lease more money you would spend on the lease payment that would make the option less beneficial.

Thus, if you want a lease commercial car then better to choose it for minimum years.

In this post, we are mainly going to discuss the factors that are helpful in deciding that leasing is the right selection or not.

Well, selection of leasing or buying is truly depend on your circumstances. However, to make sure your decision is the best, there are some questions you should answer yourself. Once you answer those question, you will get clarity towards your selection. It would make the choice clear for you.

How Many Miles Do You Anticipate On The Vehicle? 

When you decide about the leasing a vehicle, you would need to mention the approximate amount of distance, you would go to travel. This indicates, when you return the car, it must be at that or under. If you are using the commercial car on lease for three years, at the end of the lease it would seems to be covered very less distance. If you go beyond the mileage allowance then you would be charged a certain rate per mile, and due to this the service may cost you expensive price.

How Will You Select the Vehicle? 

When you are using a commercial car on lease the leasing company may dictate when and how you use a leased vehicle. You may have limited and fixed route on which you would drive. This may not be a huge concern as you should be aware before you enter a lease. You should also ensure that you able to use you leased vehicle for business.

One some vehicle, the leasing deal would be great where on other it won’t be beneficial as per the monthly rent and mileage. If there is a lot of wear and tear inside of the car, you will have to pay for it when your car is at the end of the lease.

Let us pay attention on leasing advantages and disadvantages:

Advantages: 

Tax advantages: Monthly lease payments are tax deductible as a business expense.

No maintenance or repair expenses: Regular maintenance is a covered advantage.

Easy turnover: You return the vehicle once the leasing period gets over with no worries about selling or otherwise disposing the asset.

Affordable monthly payments: Usually, lease have slightly lower monthly payments than financing on an outright purchase.

Disadvantages: 

Mileage limitations:  Most leases limit driving mileage to 12,000 to 15,000 miles per year. If you covered beyond 30,000 miles during the two years of period then you would be charged for extra mileage.

No customization: No changes could be made to the leased car. You are supposed to return the vehicle in its actual position.

Not every time buying a vehicle is right. If you want to experience the sense of independence then it is good to spend money in buying a vehicle. Leasing is the best option for commercial business.

prrajput
Pooja is a digital marketing professional. Presently, she is an incredibly passionate about software, technology, website design, paid marketing, and content marketing. She is fond of reading and Writting and exploring new things.

Leave a Reply

Your email address will not be published. Required fields are marked *