Running a business is tough, isn’t it? You’re always looking for ways to save money, and one of the biggest expenses for businesses is their fleet of vehicles. So, the big question is: should you lease or buy your company cars? Let’s dig into this together, and I’ll share my thoughts on why I believe leasing is the way to go.
Leasing: Pros and Cons
Let’s start with the good stuff. Leasing has a lot of advantages over buying. For instance:
Lower upfront costs: Instead of coughing up a big wad of cash upfront, you only have to pay a small deposit and then make regular payments throughout the lease.
Lower maintenance costs: When you lease, the leasing company is responsible for maintenance and repairs. This saves you a ton of money in maintenance costs over the life of the fleet.
Flexible terms: You can change the lease length, the number of vehicles you lease, and other factors to suit your needs.
But, as with anything in life, there are some downsides too:
Higher overall cost: Even though leasing might be cheaper upfront, the total cost of leasing a fleet over several years can be higher than buying them outright. This is why it’s recommended to update your fleet regularly to obtain the best deals.
Mileage restrictions: Leases often come with mileage restrictions, which can put a limit on how much driving your vehicles can do.
No equity: You don’t build any equity in the vehicles you lease, which means you don’t own them at the end of the lease.
Buying: Pros and Cons
Okay, so what about buying? Here are the pros:
Ownership: When you buy vehicles, you own them outright. This means you can do whatever you like with them, including selling them when you’re finished.
No mileage restrictions: There are no mileage restrictions when you own your vehicles outright. This is great news if you’ve got a lot of driving to do.
Lower long-term costs: Even though buying a fleet may cost more upfront, the total cost of owning a fleet over several years can be lower than leasing them.
But there are downsides here too:
Higher upfront costs: You need to cough up more cash upfront, which can be tough for some businesses.
Higher maintenance costs: You’re responsible for maintaining and repairing the vehicles you own, which can be pricey.
Less flexibility: You’re stuck with the vehicles until you sell them, so you can’t adjust the size of your fleet as easily as you can with leasing.
Why Leasing is the Way to Go
Okay, so that’s the pros and cons out of the way. But why do I think leasing is the way to go for your business? Here’s why:
Flexibility: Leasing lets you change your fleet as your business needs change. You can add or remove vehicles as needed, and adjust the terms of the lease to suit your needs.
Taxes: There’s something else you must take into account: taxes. Yeah, I know it’s not the most exciting thing in the world, but trust me, it’s important. Here’s the deal: when you lease, you can usually write off the entire cost of your lease payments as a business expense. That means more money in your pocket come tax time. On the other hand, if you buy, you may only be able to deduct the depreciation of the vehicles over time, which is a disappointment.
Insurance costs: Leasing a vehicle may actually save you a significant amount on insurance expenses as compared to buying.This is because leasing companies typically require higher insurance coverage, but they often have established partnerships with insurance providers that can offer you more competitive rates. On the other hand, buying your vehicles outright means you have to shop around and purchase insurance yourself, which can be quite daunting and may end up being more expensive.
Brand image: Presenting a professional image is crucial for any business, and driving an old, worn-out vehicle does not convey the right message to your clients. Leasing a vehicle ensures that you always have a modern, stylish car at your disposal. This can significantly impact how your business is perceived, and it is a wise investment in your brand’s image.
Environmental impact: You might not think of it as a top priority when it comes to your business decisions, but it should be. Leasing could be a better option if you’re concerned about the planet. You see, newer leased vehicles are generally more fuel-efficient and emit fewer pollutants compared to older owned vehicles. And if you’re lucky, some leasing companies may even offer electric or hybrid vehicle options, which can significantly reduce your company’s carbon footprint. So, if you want to do your part in reducing environmental impact and promote sustainability, leasing could be the way to go.
Making the Right Choice for Your Business
I know we’ve covered a lot of ground on leasing vs. buying your company fleet, but at the end of the day, it’s all about what works for YOUR business. Don’t let anyone tell you otherwise! You know your budget, your needs, and your goals better than anyone else. So, take some time to really think it through before making a decision. And hey, if you’re still feeling uncertain, consider reaching out to a financial advisor or fleet management expert for some expert guidance. After all, two heads are better than one, right?
Vantage Leasing – Your Car Leasing Experts
If you’re sold on the idea of leasing your company vehicles, you need to check out Vantage Leasing. They’ve got a huge range of vehicles for lease, including cars, vans, and electric vehicles. Their team of experts can help you find the perfect vehicles for your business, and they offer flexible leasing options to fit your needs.
So, what are you waiting for? Get in touch with Vantage Leasing today to learn more about their leasing options, and take the first step towards a better fleet for your business.
