Car Leasing for Business Purposes
First impressions mean everything, so showing up in a nice company car, lets them know that you mean business. Many business owners are leasing cars for business use. Leasing cars have been gaining popularity with the appealing monthly costs and the capability to change cars repeatedly to keep up with new technology and safety features.
Length of ownership is one of the most important factors to consider when leasing a company car. Many business owners and employees put a lot of miles on a car, therefore will want to turn the car in sooner, making a lease for business purposes a better deal than buying.
Mileage is also an important cost and must be factored in when considering a business lease since company cars typically get more miles on them than personal use cars, which ends up increasing costs.
The total cost of the car must be calculated when trying to figure out if you are going to buy or lease. Be sure to include the lease/loan, expected mileage, maintenance and upkeep. Also, consider the total costs for the payments and the cost at the end of the lease.
Types of Car Leasing for Business
When it comes to leasing a car for business use, there are two types, closed end and open end.
Closed End Leasing (Fixed Cost)
Who should consider a closed end lease? Companies that require an operating lease want to effortlessly budget for their fleet and have a vehicle replacement policy program.
With a close end lease, you can simply walk away at the end of your lease, while the car leasing company shoulders the risks of vehicle depreciation, while only paying extra mileage and any unexpected damage.
Open End Lease
An open lease is primarily for commercial car leases. This type of lease, the lessee pays the difference between the residual value and the actual resale value at the end of the least. Example, if the car is driven more than expected, the resale value ends up being low, meaning more costs for the lessee.
An open-end lease is perfect for companies that demand a flexible vehicle policy. It is also perfect if the company wants to have an equity interest in vehicles, using the lease as an alternate source of funds.
They also allow you to set up specific boundaries and time frames to fit your business car leasing purposes.
If you are planning on leasing a car for business use, there are many factors that you need to consider. Garston Motors can explain you figure out what lease is best for you and your company!. Please fill out the form on the right side bar or contact us.
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Business Car Leasing Advantages
Our portfolio includes many different industries and types of vehicles. We can also customize your vehicles with added features – just let us know what you need. You’ll want to set your lease term considering each asset according to what makes sense for the use of that asset.
With a lease line, you can eliminate both the uncertainty and the delays. For a business that needs to make ongoing vehicle equipment purchases, we provide the lease line before you buy-so you know how much credit you have access to in advance.
Leasing is a great way to manage the cash flow of your business by not incurring the capital expenditure and aligning the lease cost with your usage of that asset. Look at used ones, and talk to us about a sale and leaseback options if you need a cash infusion.