Thinking About Buying Company Cars? 4 Reasons You Should Lease Them Instead
If you own a company, and your employees have access to company cars, you should talk to your dealer about commercial vehicle leasing instead of buying. Buying may allow you to own a car, which is great for your personal vehicles, but not so great for commercial purposes. In fact, buying your company cars may be the worst thing for you to do, for a number of reasons. Here are just four of the reasons you should lease your company cars, instead of buying them.
No Auto Loans to Worry About
When you buy your company cars, you end up with numerous auto loans to worry about. You need to worry about the interest rates, the payment periods, and even the depreciation of your investment. However, when you lease your cars, you don't need to worry about any of that. You'll pay one flat payment each month for the life of the lease. The payments will never go up, and you won't need to worry about the depreciation of your investment.
Constant Flow of Fresh Cars
When you purchase your company cars, you're stuck with them until you pay them off. Unfortunately, that means you could be left with some high-mileage cars that are looking pretty beat up by the time you're able to replace them. However, when you lease your company cars, you'll have access to a constant flow of fresh cars. As soon as the lease term is up, simply head back down to the dealership and pick out a fresh supply of company cars. That means your fleet will always be low-mileage and good looking.
Access to Maintenance
When you own your company cars, you need to worry about maintenance. That's because all the maintenance your cars will need will rest solely on your shoulders. However, when you lease your cars, you'll be able to take them right to the dealership for all their routine maintenance needs. If one of your cars requires extensive work, you'll be given another car to drive while your leased one is in the shop. That means you'll never be without a car in your lineup, and you won't need to worry about maintenance.
Better Tax Incentives
When you own a company, you need as many tax breaks as you can get. That's where leasing your cars comes in to play. When you lease your company cars, a variety of tax incentives are available to you; many more than you'd have when you buy your company cars. So, not only will you be getting a better deal on your cars, you'll also be saving money at tax time.