For corporate transportation, many business owners turn to vehicle leasing instead of buying for several reasons. Some like the idea of having new vehicles every few years, while others enjoy not having to worry about maintenance and other issues that can keep older vehicles off the road. The key is finding the right vehicle and the right leasing deal for your company's needs.
Business vehicle leasing comes in many forms. You may find yourself needing just one or two cars for sales purposes, or your business may require an entire fleet of vehicles. Here are just a few of the leasing services you may be in the market for:
1. Fleet leasing
2. Commercial vehicle leasing
3. Business vehicle leasing
4. Commercial van leasing
Familiarize yourself with the business vehicle lease processTypically, a vehicle lease has a list of restrictions and guidelines that the client must meet. You can drive a limited number of miles per year, and you must make both monthly payments and an end-of-term payment once the contract is up. When the lease is over, you may have the option to buy the vehicle outright. There are also more flexible options available, so it's important to learn all you can about leasing and decide what type of lease you're most comfortable with.
Find the right car for your commercial vehicle leaseThe fun part about leasing is choosing among the options for your new vehicle. You can choose a luxury vehicle, a delivery van or even a heavy-duty truck for hauling supplies and gear. Look at all the options and find a company that can handle your specific needs. Many companies can supply both cars and heavy machinery, which makes your leases much easier to track on the books because there's only one vendor payment to make.
Read the fine print on your company vehicle leaseAfter you've picked out your perfect vehicle, it's important to check the fine print and understand what you're committing to. The warranty and repair issues are usually the most misunderstood parts of a lease, so make sure to ask questions. If you're leasing a new vehicle, make sure that the terms of your lease are within the warranty period and that you know where to go for repairs. That way, you're only responsible for routine care and maintenance.
- Talk to your accountant before leasing a vehicle to understand the tax implications of your decision. Unlike with traditional vehicle purchases, you can't deduct depreciation on leased vehicles, since they aren't technically yours.