Leasing a car means owning the car for a shorter period of time associated with monthly payments. With car leasing, you will be paying the difference expected value of the vehicle and vehilce’s cost at the end of the leasing term. This value is called as remainder or residual value. Therefore economyleasing gives you the best deal options in car leasing.
The advantage of car leasing in a business:
Tax difference – The first difference or comparision between buying permanentaly and leasing a vehilce is the tax deduction you pay. While buying a car, one must pay the taxes upfront. Typically for business use, this car tax is deductible. But with leasing, generally one pays tax only on every month’s payment during the leasing term, which is also tax-deductible. Hence, you may end up in paying less tax with the same advantage of a tax deduction. This is true especially if you tend to lease the car for a shorter period of time.
Mileage advantage – After leasing a car, you can also get paid for the mileage if using for business purposes. This is like buying a car.
Maintenance advantage – If the vehicle is used for business, then the maintenance cost also could be paid by the business. This is also like buying a car.
Insurance advantage – Generally insurances are higher for any business dealings. But if a car is leased for a business, then the insurance could be lower as the overhead cost and liability are overall lower.
One of the most important things to consider in business leasing:
While leasing a car there are two kinds of contracts. First, the contract can be open ended, where you can return the vehilce after the term of the lease has expired. The other type is close ended where you will need to buy the vehicel after the term of the lease has expired. Depending on how much you drive to, make sure you know this lease term particularly. Based on these conditions the best and safest deals in car leasing can be found in economy leasing.