Car for your business- should you buy or lease?

Car for your business- should you buy or lease?

Is it better to buy or to lease a car for business use? There is not a single manager that has not come across this problem. The obvious solution is leasing. You are not using the vehicle for a long time and the costs are considerably lower. On the other hand, you may want to keep the car. With vehicles like the 2017 Chevrolet Cruze, it is impossible not to resists the temptation of keeping it all to yourself. What to do? What to do? To make things simpler for you, we have the pros and cons of both.

Car for your business- should you buy or lease

Buying a car for business

Buying a company car makes sense from a financial standpoint. Even if the investment is higher, you own the automobile. This means that you can ride it as much as you want, without fearing that you will exceed mileage limitations, and you can sell it. If a vehicle has a good resale value, the best thing you can do is purchase it. You will get a lot more money than you have invested. As an owner, you also enjoy tax benefits. It does not matter if the car is on your name or on one of your employees. Your business is eligible for deductions. The main disadvantage is that you have to take care of the maintenance and repair costs.

Leasing a car for business

Most people prefer leasing a company car because it is cheaper. The lease is lower compared to that of buying, so it is not surprising that not many are willing to become owners. Not only are the up-front costs more affordable, but also you can deduct mileage expenses. Now, the bad stuff. You cannot do what you want with a lease. If anything happens to the automobile, say you hit it, you are charged. What is more, there are always additional charges. Read the fine print and convince

The bottom line

When it comes to a company car, there is no right answer. The choice is up to you. If you are torn between these two choices, we suggest buying instead of leasing. When you own a company car, you enjoy more freedom. You can customize, sell, and use it for tax benefits. Another thing to keep in mind is that you will not pay extra for each mile. It does not matter what choice you make, just make sure that you are doing the best thing for your company.