Initial Costs & Repairs
Initial vehicle costs to consider are the cash down-payment, taxes and license fees. These costs differ when buying or leasing and it is important that you make the decision that best suits your particular financial situation. Generally, the costs incurred when leasing a vehicle are less than if buying one. However, there may be additional charges when the vehicle is returned if you go over the mileage limits or return the vehicle with any unrepaired damages. It's recommended to estimate both annual mileage as well as repairs and maintenance costs, as these factors may influence your total costs and decision to buy or lease your next business vehicle.
Business Vehicle Usage
Business owners should know who is driving the vehicle, its location as well as keep track of its usage (e.i., mileage). If you expect the vehicle to be in constant use over its useful life and to incur significant operating miles, then you may benefit from buying rather than leasing. Since a purchased vehicle is yours, it is not subject to lease mileage limitations which may be costly over the lease term.
Conclusion
Clearly understanding your choices before you buy or lease your next business vehicle will benefit your business. Ultimately, your specific business circumstances will drive your decision. For more information and professional consulting for your business, contact us today.
