Running a business is hard, and managing a fleet of vehicles is no joke either. So, if you’re looking for a smarter, more cost-effective way to expand your vehicle fleet, business car leasing might be just what you need.
Leasing cars can help you access the latest vehicles without the high upfront costs and maintenance headaches that come with ownership.
But that’s not all. Let’s take a look at other benefits of leasing business cars.
1. Avoid Depreciation
Car leasing happens when you pay a monthly fee to a company to use a car for a certain period, typically between two to five years. You don’t own the car when your lease time runs out and don’t have to worry about depreciation because the car is owned by your leasing company.
However, if you’re entering a hire-purchase agreement (you can learn more about this type of loan here) with a car leasing company, you’ll own the car when the lease time runs out. That means you’ll get a car that’s worth less than it should be once the contract ends. Plus, it’ll be dinged to boot.
2. Higher Cost Savings
Keeping cash in your pocket is always a boss move when running a business. But if your fleet of vehicles is draining your bank account faster than an espresso shot, it’s time to make a change. That’s where business car leasing comes in.
With lower upfront costs and manageable monthly payments, leasing can free up your cash flow and let you spend that hard-earned cash on other important business matters.
Plus, because leased cars are new and under warranty, you can avoid the headache of unexpected maintenance and repair costs.
3. Tax Benefits
Taxes are a necessary evil if you’re in business, but what if we told you that business car leasing could actually provide some tax benefits? That’s right — leasing cars can offer tax advantages that owning a car cannot.
For instance, you can deduct the entire lease payment as a business expense when you lease a car. You can also take advantage of bonus depreciation, further reducing your tax liability.
4. Easier Fleet Management
Managing a fleet of vehicles can be a real headache. But once you sign a lease, you don’t have to worry about any unexpected repairs that come once you buy a car. You also don’t have to spend any money on annual maintenance, as your leasing company takes care of that.
Plus, when it’s time to upgrade your fleet, you can dust your hands off the leased cars and replace them with newer models. That way, you can easily keep your fleet up-to-date without having to get into the hassle of selling older vehicles.
5. Increased Flexibility
Just like coworking spaces help companies increase productivity, leasing can give you the flexibility you need to adapt to changing situations. For instance, if you experience a surge in demand and need more vehicles to meet it, you can quickly add leased vehicles to your fleet.
But if your business slows down, such during the winter months, and you no longer need such a massive fleet, you can quickly return as many leased cars as you need to without worrying about being stuck with those you can’t make a profit off of.
You also have more options when it comes to vehicle types, car makes and models, lease terms, and mileage options.
6. Reduced Maintenance and Repair Costs
Finding a reliable workshop and regularly maintaining a fleet of vehicles can take a significant amount of time and money. But when you lease a car, the leasing company is responsible for routine maintenance and repairs. So, you don’t have to worry about repair costs or spend days finding a mechanic who’ll fix the problem, not the symptoms.
Plus, because leased vehicles are typically new, they come with warranties that can cover major repairs. So, you can save money on unexpected repairs and reduce the downtime your fleet experiences.
7. Access to Newer Vehicles
When you lease cars, you can upgrade them every few years. So, instead of old trucks or cars from ’94, you can always drive the latest models, with heated seats, bangin’ speakers, and all the bells and whistles.
Plus, newer cars often come with better fuel efficiency, which can help you save money on gas and reduce your carbon footprint — if being environmentally friendly is something you’re concerned about.