When the time comes to choose your next business car, there will be lots for you to consider. Make, model, and mileage are all important, as is the toss-up between whether you’re better to buy or lease.
With both options now being popular in the U.K., it’s important to take a look at the pros and cons of each when it comes to making your decision, so we’ve compiled this short but handy guide to help you…
What is Car Leasing?
We all know what it means to buy a car outright, but some people are a little confused about what leasing actually entails. Essentially, those who choose to lease rent a car for a set number of years, paying a fixed monthly sum in exchange for being able to use the vehicle. When the contract comes to an end, the motor is handed back and a new lease can begin.
Which of the Two is Better?
The toss-up between the superiority of buying over leasing, and vice versa, really comes down to personal preference, but if this is a decision that you’re about to make, then here are a few points to help you…
The Pros of Buying
One of the biggest differences between buying and leasing is that in the former scenario, ownership of the vehicle will be vested in you. This means that if you buy outright from a company like Shelbourne Motors, you need only make a single lump sum payment, as opposed to paying a set amount every month. Many people prefer this.
In addition, when you buy, your car becomes an asset that you can sell if the need arises. This means that if you decide to purchase a new vehicle a year or two down the line, you can trade in your current motor to help reduce your costs. Equally, if you need funds which you don’t have, you can sell your car to access a greater amount of capital.
Furthermore, you will not be limited in any way by someone else’s edicts. Thus, if you want to modify your car in some way so that it better represents your business, you are free to do so. You may also travel as far and wide as you like in it without needing to concern yourself with mileage limits.
The Pros of Leasing
Your other option is to lease a commercial vehicle, and this also has a number of benefits, foremost amongst them the ability to pay month by month. Although there are those who prefer to make one lump sum payment, there are also a lot of people who would rather spread the costs of car ownership, and if you’re one of them, leasing may well be the better option for you.
In addition to this, your maintenance costs will be low, not only because newer vehicles tend to be more reliable, but also because many will be covered under the terms of your agreement. Furthermore, you may be able to claim a tax deduction if you own a business, which can be another very enticing financial incentive.
If you’re on the hunt for your next business car, which of these options would be best for you?