Given that business is doing well, you now feel that your business actually needs a car. You have the freedom to choose between buying and leasing but you are undecided. Being a business, you need to aim at cutting your business expenses while your business operations are enhanced. This statement brings you to the question what you basically need to go for. Leasing could be better. Therefore, there is a need to have a clear understanding of the benefits and the downsides of going for the leasing option. The following are some of the aforesaid.
Low costs are what basically pull us into doing something. The initial cost of leasing is usually low. It is usually lower than the down payment that you will be required to pay for a similar car in case you want to purchase. Leased cars will usually attract certain tax benefits to it. This is effected if and only if the car is used for business purposes for at least fifty percent of the time. It will be almost inevitable to save money that can be used on other important ventures if you take this into consideration. Your enterprise’s growth will definitely be enhanced as a result. Additionally, fewer demands are attached to leasing in comparison to when you purchase. Your business will not be exposed to many costs since the maintenance and repair expenses of a leased car are literally low. It is even possible to switch to another car in case you find the first one is being too costly. Still, at the end of the leasing cycle, you will not need to worry about selling your car.
A leased car will help you in attracting newer customers. Clients actually appreciate working with established businesses that seem moneyed. Leasing a car will give such an impression. By this, your business will actually seem bigger than it actually is. This will easily facilitate the quick and easy sale of your products and services.
However, there are a few drawbacks. It might seem to be expensive in the long run. It is true that leasing saves you money that can be used in transacting routine bills but purchasing a car may cost you lesser than leasing. You will not have ownership rights of the car. Some charges may be hidden and will only be discovered at the end of the cycle. Some leasing agreements may also restrict customization of your car. By this, you will not be able to sell the culture of the company to the public. If customized, you will have to repaint the car at the end of the cycle. Whichever option you are going for, choose wisely.