Leasing is becoming increasingly popular for businesses as there is an ever growing list of positives which is fast outweighing the option to buy.
We’ve outlined the ‘Buying Vs Leasing’ pro’s and con’s so you can make an informed decision for your business.
+ If you can afford to buy the car outright this will save you money, rather than paying any mark-up on finance offers
+ When you’ve finish paying the finance deals (or you have paid the full amount) and the vehicle is still in good condition, a few more years’ usage out of the car will save on your monthly outgoings
+ You can trade in or sell when you would like to purchase a new vehicle
– If you can’t afford to buy the car outright the monthly (and overall) payment can be more than leasing (and higher than the advertised costs)
– When purchasing your own vehicle you will have to cover the servicing, tax, breakdown and maintenance costs, this can be extremely expensive if you have a number or vehicles
– Cars tend to depreciate in cost rapidly; therefore you will usually be at a loss by the time you sell the vehicle on
+ The monthly payments to lease a vehicle is usually much lower than the monthly finance payments to buy a car
+ You are able to upgrade the vehicle every few years dependant on when your agreement expires with the dealership
+ The dealership covers any repair costs and general maintenance of the vehicle and depending on which dealership you source your car from they will sometimes cover the tax and servicing costs as well
+ You don’t have to suffer any depreciation costs in the vehicle because you are only paying for the time that you are leasing the car
+ Your dealership will usually offer you a number of payment options depending on the number of vehicles you are leasing from them, thus freeing up your cash flow
– You will never actually own the vehicle, should you experience any unexpected cash difficulties the dealership is free to take the vehicle back at any time
Leasing a vehicle can help you manage the cash flow within your company. As soon as you have the vehicles in place to ensure maximum saving ensure you manage the fuel consumption; UK Fuels Jet Card is a competitive option.
Author Bio: Leah Jarratt is a regular guest writer for ukfuels.co.uk.