| Many businesses face the tough decision when it | | | | leasing or buying? |
| involves purchasing or leasing vehicles that are an | | | | When a person or company finances a vehicle for |
| integral part of the company. While there are still tax | | | | purchase, they are responsible for the vehicle until is |
| incentives available for those who buy their business | | | | paid off. Leasing offers a greater advantage to |
| fleet vehicles, leasing could possibly yield even more | | | | business owners as the vehicle can be returned with |
| benefits to the business in relation to taxes. | | | | no or little penalty. The user only pays for the |
| What is leasing and why is it any different than | | | | depreciation of the vehicle which can include mileage |
| buying? | | | | amount. |
| Simply put, when a company or individual leases a | | | | While some consider mile overage fees a detracting |
| vehicle, the lessee pays for the depreciation of the | | | | feature of leasing a vehicle, in most cases the |
| vehicle. An individual or company that purchases a | | | | depreciation seen in cash purchased vehicles can be |
| vehicle pays for the entire amount of the car or | | | | far more unsettling in terms of overall costs to the |
| truck. Leasing contracts can be negotiated in much | | | | company. In order to avoid penalties associated with |
| the same way a purchase is conducted. Many | | | | over extending the mileage agreement, |
| reputable vehicle leasing outlets will negotiate with the | | | | businesspeople should factor in their needs when |
| buyer in terms of payment and mileage limitations. | | | | negotiating a lease contract. |
| Purchasing a new vehicle for fleet operations can | | | | Flexible options also make leasing more favorable |
| ensure that the company or individual owns the | | | | among businesses. Fleet management companies can |
| property however as the vehicle age's, repair and | | | | also save time and money when it comes to vehicle |
| maintenance costs can overshadow the savings in | | | | maintenance and repair. Other perks can also include |
| the long run. | | | | roadside services and other special programs. These |
| Persons or businesses that lease can save | | | | programs can significantly improve the company's |
| substantially by trading their fleet vehicles in after the | | | | efficiency and personal safety of the employees |
| contract has expired for more modern and reliable | | | | operating the leased vehicles. Businesses have many |
| products available. Having modern vehicles in a | | | | different options in terms of the level of involvement |
| business's arsenal can also project a better image of | | | | with regard to maintenance and repair issues. |
| the company. Customers and clients alike are more | | | | Companies with a larger need for a considerable |
| apt to purchase goods or services from a polished | | | | amount of vehicles should consider the services of a |
| looking company with better and newer equipment | | | | fleet management company. Some companies will |
| than competitors who do not. | | | | take on the maintenance tasks themselves or turn to |
| What are the tax benefits when leasing a vehicle or | | | | smaller automotive shops. Since most leased vehicle |
| fleet of vehicles? | | | | contracts are within the warranty coverage period, |
| Tax benefits can differ from country to country and | | | | many larger repair items may be covered by the |
| state to state. Most people who lease a business | | | | manufacturer. Abuse to the vehicle can however void |
| vehicle can 'write off' almost all the expenses | | | | the warranty of the vehicle. |
| associated with the vehicle. In order to take | | | | Locating as well as ordering a commercial grade |
| advantage of these tax incentives, records of use | | | | vehicle can be handled more readily by fleet |
| and costs must be kept in order to prove that the | | | | companies and participating dealerships. Professionals |
| user of the vehicle used it for business only purposes. | | | | in the industry are highly trained and involved with |
| It is very common that maintenance, fuel, leasing | | | | the needs of their customers. |
| payments and upfront fees be deducted from the | | | | Customers who wish to explore adding leased |
| company's taxes. With cash purchased vehicles, | | | | vehicles to their company can also receive discounts |
| fewer tax deductions can be made by the company | | | | for signing contracts on multiple vehicles. Low or no |
| or individual. It is very important to consult a tax | | | | down payment options can be available to the lessee |
| professional about the different tax codes and how | | | | and monthly payments of a leased car or truck can |
| they can affect the business. | | | | be markedly lower than financing to buy. |
| What other factors should someone consider before | | | | |