Action Steps
The best contacts and resources to help you get it done

Investigate corporate car leasing companies

Look at the various corporate car leasing firms available in your area. There are two types of firms--specialized corporate car lease firms and automotive dealerships. Both firms offer leases, but the specialized firms offer additional, time saving services tailored to the busy executive. Make a list of the features that you require to ensure the vehicles provided meet your needs.

I recommend: Identify the price range for monthly leasing payments that you are willing to pay. Executive Car Leasing specializes in providing a list of vehicles suitable for an executive and arranging the financing terms. Prices range from $45,000 to $100,000. Car Buying Discounts offers a service to receive discounted lease costs for a wide range of vehicles. Prices range from $177 per month to $699 per month leasing costs.

Research corporate auto lease swap firms

Look into the new firms in the corporate auto lease industry. These firms specialize in bringing together customers with leases they want to exit with business auto leasing clients. The lease costs are picked up by the new lease holder for the remaining term of the lease. This is a great way to obtain business auto leasing at a reduced price

I recommend: Read carefully the contract clauses and fine print of these agreements. This method is very popular and provides excellent information on the pricing and costs of automotive leasing for executives. Swap A Lease and Auto Lease Breakers offer a wide range of vehicle and often have incentives to take over the lease. Prices range from $99 per month to $700 per month, depending on the vehicle selected.

Evaluate corporate car leases options and prices

Calculate the true cost of corporate auto leasing before signing a contract. Corporate car leases are financed under the company name, based on the credit rating of the company. A standard business car lease is for five years and has a buy out clause at the end.

I recommend: Stay on top of the costs associated with business car leasing, especially when providing fleet vehicles for your business. Toolkit and Lease Guide both provide excellent information on lease price tables, vehicle valuation and more. The average buy out clause is for 15 - 30% of the original value. Depending on the vehicle and the length of the term, this could range between $10,000 to $50,000. Look into leasing specials from companies that provide executive auto leasing, such as Shaker Auto Lease, which can range from as low as $250 to $900 or so for a variety of class options.

Helpful advice for making the most of this Guide

• •  A business car lease can be for a wide range of vehicle types, from the executive, luxury vehicle to the trucks and vans needed to run the business. Make sure that the operating costs of the vehicle are included in the price calculations.

Guide to Automotive Leasing for Executives

Take advantage of the benefits available on a corporate auto lease

By CY Glover, Editorial Director / Professional Wordsmith, CDM / Freelance Editor-Writer

Action Steps
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Identify the vehicles that interest you most in corporate auto leasing

Knowing in advance the type of vehicles you want saves time. Make business auto leasing quick and simple. Narrow your strongest options down to a few to make your final decision.

I recommend: If you need services in the United States as well as Puerto Rico or Canada, contact Walser Leasing. They utilize an established network of dealers to accommodate their clients. They offer various finance options on executive auto leasing. View automobile options online to quickly identify the vehicles to add to your corporate fleet. For luxury vehicle fleets, consider locating a Cadillac dealer in your area.

Get moving on your next corporate auto lease order

After you've decided on the type of fleet you want for your business, placing your order online or by phone and having your vehicles delivered to your business is a convenient way to add your new fleet.

I recommend: If time going from dealership-to-dealership to select your corporate fleet is a challenge for you, Merchants Leasing will process your lease order by phone and deliver your fleet anywhere in the US in only a matter of days.

Establish a budget in advance

Before you go in to sign your next business auto lease, a few quick calculations will help you set a budget for one or a few vehicles on automotive leasing for executives.

I recommend: Take time to calculate the cost and stay within your established budget. Utilize this online calculator and set a reasonable goal.

Helpful advice for making the most of this Guide

• •  Determine if the open-end or closed-end lease works best for your business on business vehicle leasing.
• •  Dealerships value your business and are ready to negotiate. Mention important options before you seal the deal. Renegotiate the miles if you question your ability to live within the terms of the mileage agreement to avoid costly overage fees. As with any corporate car leasing agreement; negotiate for the best interest rate.

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Understand corporate car leasing tax write off requirements

Discuss your corporate auto lease requirements with your accountant before making a vehicle selection. There are very specific tax rules about the types of corporate auto lease that is eligible to be included as a tax deductible business expense. Review the wording carefully to ensure that the maximum benefit is gained with your business car leasing arrangement.

I recommend: Follow up on your discussion by reading the documentation provided by the Internal Revenue Service on acceptable claims under the business use of car section. Review the tips and tricks provided by Small Business Notes. Through proper management and advice, your firm will be able to gain the greatest financial benefit possible.

Try out executive cars to locate the best vehicle for business auto leasing

Invest the time to review the types of vehicles available and ensure your selection is the best vehicle for business auto leasing. Luxury and high end vehicle are typically selected for executive and retain more of their residual value. Anyone interested in automotive leasing for executives basics must ensure the vehicle is properly maintained.

I recommend: Test executive cars to help in the vehicle selection process. All State Leasing and Mears Leasing specialize in commercial leasing, short term and long term. Arrange for a short term business auto lease to ensure your needs are met before entering a long term lease.

Visit business auto leasing companies

Visit firms that focus on automotive leasing for executives. Remember that business car leasing firms are focused on meeting your needs in keeping with your role as an executive. Luxury and high end vehicles add to the image of a successful firm.

I recommend: Check out Merchants Leasing for pictures and information on executive cars available for lease, or choose a lease based on your industry. Pick a corporate auto leasing company that's part of the NVLA membership with the NVLA Directory. The NVLA helps the auto leasing industry adhere to high standards, both ethically and professionally.

Helpful advice for making the most of this Guide

• •  Business vehicle leasing is a very popular financing option for executives. Although the expense may qualify as a tax deduction, it is still an obligation that must be paid. Calculate the maximum amount that your business can afford and do not exceed that.

Action Steps
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Open-end lease

In an open-end lease, the leasing company determines the value of the car at the end of the lease. The company that has held the lease on the car pays any difference between the actual value of the car and the pre-determined value of the car. These leases are relatively common and make more sense in the business world, but it is important to understand that your company may end up owing quite a bit of money at the end of the leasing term.

I recommend: Check out Automotive.com for more information on whether an open-end lease makes sense for your company.

Closed-end lease

A closed-end lease doesn't leave you with any unexpected expenses at the end of the leasing period. You will be responsible for any charges due to excessive mileage or wear and tear, however. Individual lessees often purchase the vehicle at the end of the lease period, rather than pay these fees. Commercial leasers, however, are typically ready for new vehicles.

I recommend: Edmunds.com explains the pros and cons of a closed-end lease in detail.

Specialized corporate leasing firms

One way to lease a fleet of company vehicles is through your local automobile dealer. Many companies find that this is a time consuming process, and prefer to use someone who specializes in working with businesses. A specialized corporate leasing firm can arrange to deliver the vehicles to your place of business. Many specialized corporate leasing firms also provide additional services, such as automatic service reminders and other fleet management tools.

I recommend: Merchants Leasing is one specialized leasing firm that offers a range of services to companies. Review their philosophy to better understand what specialized corporate leasing firms can offer.

Lease swaps

Even with careful research, all automotive leases don't work out. Maybe business is down and you have to cut back expenses. Perhaps the vehicle you leased is not heavy-duty enough for the work it's required to do. Lease swaps allow you to trade in a vehicle for one that is better suited to your needs, without losing money by ending the lease contract early.

I recommend: Review LeaseTrader.com for information and tools on how lease swapping works.

Vehicle remarketing

When you turn a car in at the end of the leasing period, it is typically sold. Many leasing firms will use a process called vehicle remarketing to help save you money. After they sell the vehicle, they will determine the difference between the amount that you owe for wear and tear, mileage and other depreciation costs, and the amount that the vehicle sold for. You may end up owing nothing, or even getting a check in the mail.

I recommend: Gain insight on vehicle remarketing by reviewing techniques Walter Leasing employs to get the best return on your money.

Early termination charge

What happens if you need out of a lease? It is critical to ask this question up front. Most leases have an early termination charge built into the contract. If a business wants out of a lease agreement, it may be because of the need for some belt tightening. If that's the case, you don't want to be stuck with hidden expenses.

I recommend: The Federal Reserve Board provides more information on early termination charges for both closed- and open-ended leases, including what is permitted by law and what is not.