An important question small business owners face is which is better to buy or rent the vehicles needed for the business. Buying provides the benefits of ownership (after the full loan is paid off), while leasing provides benefits that are not available to the buyer. Let's consider everything in detail.
Low monthly payments
With a lease, the monthly payments are generally lower than with a purchase, which frees up additional capital for the business. This is useful if you have just opened your own company and have a strong cash flow. Additional savings can be used to purchase production / industrial equipment or to supplement the marketing budget.
Tax incentives and depreciation
You can deduct all or part of the monthly rental payments from income tax. According to statistics, a car depreciates by 20-40 percent in just the first year. In most cases, the amount of allowable depreciation charges will be higher than the monthly payments, and this is a nice bonus. However, laws and regulations are subject to change, so you should consult with an expert for your specific situation.
Guarantee provision
By leasing a car for a relatively short period of time, you get a good chance for full warranty service. This will allow you to reduce the additional costs associated with expensive vehicle repairs.
