When it comes to commercial cars, it is vital that you take the time to make the right decision for your company. In addition to choosing a suitable vehicle, you will also want to think about ownership. You could either purchase the car so that it becomes your property or you could take out a lease. The right decision will depend on your preference and a few factors, but here are the benefits and drawbacks of both:
Buying
The main advantage of purchasing the automobile is that you then own the automobile. This means that it could be traded or sold down the line, plus you can also modify it if you wish (this is important if you want to have your company information printed on the exterior). Additionally, there are also tax benefits to consider when you purchase (although it must solely be used for business purposes).
The drawbacks of purchasing are that it can be expensive and this is not ideal if your company is working with a tight budget. The upfront cost will be too high for many businesses, which would mean arranging a finance deal which can also be costly when you consider interest.
Overall, buying is a great option if your company can afford it. Buying a used car from a reputable dealership like Imperial Car Supermarkets could make it more affordable.
Leasing
Leasing is a good option as it allows you to drive a brand new car every few years which can bring a host of benefits. Additionally, you avoid depreciation with leasing as you technically never own the automobile and this allows you to avoid a large financial hit. The amount that you have to pay for the lease will be lower than buying and this is ideal if you are working with a tight budget or you are a small business.
The disadvantages are that you do not own the automobile which means that it cannot be modified in any way and this will be problematic for companies in many industries. On top of this, there will also be annual mileage caps which could cause an issue if you spend a significant amount of time behind the wheel.
Leasing is best if you are looking to save money and you like the idea of driving a new car every few years.
It can be tricky to decide between the two, but the above information should help you to make an intelligent decision for your company.
Facebook Comments