Business vehicle leasing vs. buying: what should you choose?

 

Undoubtedly, business owners who benefit from a reliable vehicle can run their business more efficiently, save money and even increase their profits. However, most of them face a difficult choice, which refers to buying or leasing the car. Obviously, choosing the less expensive variant represents the main goal of any person but an entrepreneur has a bigger responsibility, which is to ensure the functionality and evolution of a company. If you fall into the same category, be aware because sometimes people end up over-analyzing things and this represents a mistake that could impede you to make a quick and objective decision. First, you should decide on the type of vehicle that best suits your needs and preferences. This means that you have to explore many options available on the market while taking into account an expert opinion. For instance, Edmunds says the 2018 Kia Sorento  deserves your full attention.

Consider your intentions on the long term

Returning to the grand debate on buying or leasing a company vehicle, you should ask yourself certain important questions before reaching an accurate conclusion. These questions involve the amount of time you plan to use the car and the size of your budget. If you intend to keep the vehicle for no more than three years and you do not want to make a great financial commitment, then leasing represents the most convenient variant because you will not significantly affect the value of the car. On the other hand, if you intend to use the vehicle for many years and you beneficiate from a generous budget, then buying may advantage you more. Furthermore, regardless of your decision, you cannot evade taxes so you might as well think this aspect though before making a choice. Controlling the mileage is crucial for tax deductions, but if some else will be driving the car then you do not have the guarantee that the respective person will pay attention to this detail.

Answer these important questions

Other questions for which you should provide clear and straightforward answers before making the long-awaited choice involve maintenance cost and depreciation rate. For instance, if you are planning to lease the vehicle, then you also have to spend money on regular maintenance referring to professional inspections, tire rotations and oil changes. The maintenance cost does not disappear even if you plan to buy the vehicle. The types of vehicle as well as other factors influence the depreciation rate.

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