The age-old question, to buy or to lease? Read on to find out the pros and cons of buying vs. leasing a utility vehicle for your business.
Leasing Advantages
- Taxes: Monthly lease payments are tax-deductible as a business expense
- Repair Costs: Maintenance is covered as part of some leases
- Lower Payments: Leases tend to have lower monthly payments than purchasing
Purchasing Advantages
You Own It: You can sell the vehicle and recoup some of your original investment
Taxes: The cost of the vehicle is a business expense for tax purposes. Moreover, depending on your area, hybrid and electric vehicles could be eligible for a tax break
Purchasing Disadvantages
Upkeep: After your warranty or dealer services run out, you must front all future tune-ups and repairs.
When you buy a utility vehicle for your business, you also now have an asset. This asset can be resold later. You could also have a utility vehicle which later increases in value, depending on the sector-specific alterations or future popularity of the model. However, if you are in a business that requires switching in and out of vehicles often, then leasing would likely be the most cost-effective and expedient route.
Every business is different. That’s why you should take a good look at your sector as well as the current and future needs of your company. All of this together will help you make the best decision.
