Car Leasing Benefits Compared to Car Purchasing
For companies that require the use of vehicles for the many or even only for a few of their employees buying vehicles is accepted as an expense that can’t be avoided. But there is now an options that is getting more popular by the day in many companies. Car leasing or corporate car leasing to be exact may be a concept that everyone is not familiar of but it offers many benefits that can’t be found in any car purchase.
Cars Depreciate Only in Value
It is said that property rental is simply a waste of money since you are spending money on something that’s not considered an asset that can grow over time just like in the case of a mortgage. But you have to understand that cars are not like houses since they depreciate over time. This means that you won’t be able to get the investment back. With car leases, the monthly payments are also cheaper by 35 to 55 percent compared to the repayments on a loaned car. Only a small amount is required for deposit as well in a car lease.
Covered Maintenance Costs
The more vehicles a company owns, the higher the cost of maintenance is required for the cars. With a car lease though the car manufacturer’s warranty will include the overall maintenance of the leased car for the entire lease period. This ensures that regardless of what problems that may arise with the vehicle the company won’t incur further expenses.
You may also ask to be included in the leasing agreement several servicing costs like tires, etc. Road tax is also usually covered by the cost of the lease.
Smaller Amount Needed for Capital
When you buy a brand-new car, it usually requires a large amount for initial payment or down payment. This isn’t the case with car lease deals since they also require a small amount for deposit.
This is a good option for small startup companies and those that don’t have much money for large upfront costs which is often required for brand-new vehicles.
With car leasing, it is also easier to upgrade to the latest car models with latest features.