Are you planning to buy a car? Wait! You can also consider leasing for the business. Before you get in touch with a corporate vehicle leasing company you should ask these questions to find out:
1. Do You Have Enough Money to For Initial Payments?
If you are worried that you don’t have enough money for the down payment from your business, then you should consider a lease. With some search, you can find a company which will not ask for a sizeable down payment. How if you try to buy a car with a loan then you should arrange for a down payment.
2. Who Will Eventually Drive the Car?
The decision to buy vs. lease also depends on who will be driving the car eventually. If you are getting the car for your business, then your employees will be driving the same. As an owner, you will have more control over the mileage. If your employees are going to drive it, you may not be able to control the personal use of the vehicle. However, when you have leased the car, you can tell the employee to use the car for official purpose.
3. How Many Miles Will You Need The Car For?
You should take the time to find out how much your business vehicle will be driven. The car leasing terms often come with a limit on mileage, and you will need to make an additional payment for lease if you want the extra miles covered. However, you will have to pay more for the lease if you want the extra miles covered. The key advantage of buying a car will not have any limit on the miles but remember that the vehicle will depreciate rather quickly if it has more miles on it.
4. Will Have To Pay For The Additional Cost Of Maintenance?
If you are planning for leasing car for your business, you should be ready for the routine maintenance which includes some extra money for routine maintenance. It consists of the oil changes and tire rotations as well. There are many leases which require the maintenance. Even if you buy cars for your business, you will have to opt for the maintenance of the same.
5. What Do You Want To Do With Car At The End Of The Lease?
Once you have repaid the car loan, you will still own the vehicle. You can give it to your employee or use it as a trade-in. If you have chosen a car lease, you can give the leased vehicle back, and the get the other one. However, if you want to own the car, you can purchase the same as the dealer.
6. How do Taxation and Depreciation Work for the Leased Car?
If you use the leased car for purely business purposes, the car leasing payments are tax deductible based on usage of the vehicle for business. How when you take a car loan, only the interest of the car loan is deductible as the business expense.
In the End
When you are hiring a corporate vehicle leasing company, you should ask these questions to ensure that you get the best deal!
Sunder is a techie guy who loves to write about anything that is directly or remotely connected with technology. From hardcore tech stories to the overall influence of technology in life, Sunder is passionate about all things internet. When he is not surfing the internet, he is busy grooving on his favorite beats.