Businesses often use vehicle leasing to allow for careful cash conservation and financial planning. There are a number of benefits of leasing a vehicle. Here we’ll take a look at some of the major ways a company can benefit economically from leasing its fleet vehicles:
- Leasing a vehicle requires no down payments and often no cash outlay at all.
- A business lease frees up business capital for other purposes.
- The lease payment is tax deductible and offers both on of off balance sheet flexibility.
- Leasing offers improved cash management to businesses. By paying for the vehicle as it is used, the business often has a lower monthly payment than if the entire vehicle is financed.
- Leasing yields fewer maintenance problems as the vehicle is under manufacturer’s warranty for the majority of the lease term. This lowers the overall fleet operating costs.
- Leasing a business vehicle eliminates trade-in hassles. At the end of the lease, the lessee just turns in the vehicle and keys to the leasing company, but also maintains the option to re-lease or purchase it.
Businesses should consult with their tax advisor to determine the specific benefits that leasing will afford them.
Selig Leasing can provide you with a comprehensive lease vs. buy analysis for your company.
Contact us and a fleet vehicle specialist will contact you to determine which leasing options are right for you.