Choosing Whether To Rent Or Buy The Vehicles For Your Company

A business owner may have a time when they need to decide whether your business will buy the vehicles it needs or lease them. Each option has pros and cons, and you will need to weigh these carefully before deciding what is best for your company. There are various factors to consider, such as how you will use the vehicles, how far they will travel annually, and the type of vehicles you require. Below are some of the pros and cons of each option to help you get the perfect vehicles for your business and select the best financial option.

Purchasing The Vehicles Outright

When you get a Ford Transit on finance or pay for it in cash, your business has a tangible asset for the money it spent. As the vehicles are used for business, there are also tax advantages that you can enjoy, and your company accountant can explain this in more detail. You have no restrictions on the annual mileage the vehicles do with financial penalties for exceeding the agreed mileage. It is often cheaper overall when you buy and keep the vehicle long-term, and you can project the costs for keeping it on the road fairly accurately.

Leasing Your Company Vehicles

When you lease the vehicles you want for your business, you will often have a lower monthly charge than if you take out a loan to purchase the vehicles outright. The running costs are reduced as you do not need to worry about servicing the vehicles as it is included in the overall price. You can also have commercial vehicles with the highest specification and update your fleet of vehicles every couple of years to the latest models. You know the monthly fee for keeping the vehicles on the road until the end of the lease agreement, so there are no additional costs to worry about for your business.

Some Of The Cons

There are cons to both leasing and buying vehicles, and you need to weigh the cons against the pros of each to conclude which is the best option for your company. Some of the cons are as follows:

Cons Of Leasing:

Some of the cons of leasing include the increased cost for the long term when you lease the vehicles instead of owning them. If you exceed the declared annual mileage, there is a charge for every mile you go over the declared amount, which can prove expensive. You will also not own the vehicle, so the company has no tangible assets for the monthly charges it pays for them.

Cons Of Buying:  

There are also cons to buying the vehicles outright, which you need to be aware of before deciding which option to choose for your business. The monthly running costs are higher when you own the vehicle, and one of the worst things about owning one is the depreciation of it. The value of the company asset goes down over time, and it moves rather quickly.

Take your time and do plenty of research on whether leasing or buying is better for your business. Make the right choice for your company, and you can get quality vehicles for your fleet that your employees love.

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