by Susan Paige
You need to be smart in determining what to spend on in your business. You want to maximise the profits without overspending. Having a vehicle to use for day-to-day operations is crucial for any company to survive.
If you are searching for a vehicle now, you have an option to either rent or buy one. Between these options, getting a car lease could be more beneficial for you. These are some of the reasons why you need to start looking at a quality car leasing company like www.genusleasing.com.
Initial cost
Buying a new car would require a higher down payment than the security deposit required for a car lease. Once the lease is over, you can also get the deposit back. Although the amount of the deposit changes on a case-to-case basis, you will significantly benefit from the required initial cost of a car lease. If you intend to use a vehicle to operate your business, vehicle leasing is the best option.
Mileage
You will deduct the mileage expenses whether your purchase or lease a car. The only problem is that when you own the vehicle, you need to worry about its resale value. For the leased vehicle, you do not care about how much mileage there is since you will return the car to the owner at the end of the deal. However, you also need to check if there is a mileage limit and what the penalty is for going beyond it.
Wear and tear
You need to be cautious with the wear and tear on a vehicle that you own. Its resale value will be significantly lower because of it. With a car lease, you might not care about how many changes the car has undergone since the time you got it to the end of the contract. However, the car lease company might charge you for excessive wear and tear or intentional changes and damage.
You can decide what happens at the end of the term
Buying a new car means that you will have it forever unless you choose to sell it. If you choose to sell it, you need to find a buyer who is willing to purchase it at a price you agree with. When you lease a car, the term will eventually come to an end.
At that point, you have the freedom to determine if you will lease another car, continue leasing the same one, or purchase the car you leased. Since you have already paid a significant amount while leasing the car, you will save a lot if you decide to buy it. If you opt to lease a different car, you can choose a new model which is more suitable to the current needs of your company.
By almost any standard, it is wise for you to lease a car for your business instead of buying one. Besides, your company could expand and evolve over the years, and you might need a different type of vehicle at some time in the future.
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So, what do you think ?