Leasing vs. Buying
Business car and truck fleet leasing gives you the flexibility to tailor each of your vehicles to meet the exact requirements of your company’s needs and objectives while improving your cash flow and lowering your monthly payments.
It’s common to want to compare the benefits of leasing a fleet vehicle vs. buying it. The response you will hear to this question is that leasing simply lowers the monthly cost of a vehicle. While this is certainly true, the benefits of leasing your fleet vehicles go far beyond just lowering the monthly cost of the vehicle including tax savings*, reduced maintenance costs and less waste. Leasing also aligns well with economic life cycling, resulting in the ability to operate a more current fleet of vehicles.
We’ve created this leasing vs. buying comparison chart to outline just some of the benefits of leasing your fleet. To learn more about the advantages of leasing your fleet vehicles contact us today. We’d love to hear from you.
The truth about leasing vs. purchasing
Leasing |
Buying |
|---|---|
|
Financial life equals useful life. |
Your company’s book value is often not in line with market value at time of disposal. |
|
A leasing program provides the discipline to enforce standards and reduce vehicle acquisition costs and administrative costs. |
Vehicle diversity and lack of standards increase both vehicle acquisition costs and administrative cost. |
|
Replacing leased vehicles is cost effective and simple. |
Upgrading owned vehicles is capital intensive and cumbersome. |
|
A fleet leasing program eliminates excess. |
Purchasing intensifies vehicle fleet build-up. |
|
Lessor assumes disposal responsibility, maximizing returns with automotive expertise. |
Disposal of vehicles is time consuming, expensive, and lacks the application of automotive expertise. |
|
Low monthly lease fee |
Capital Intensive |
|
Leasing allows cash flow flexibility. |
High budgeting and forecasting costs. |
|
Vehicles are cycled under a carefully planned program, reducing maintenance expenses, improving corporate image and driver morale. |
Vehicles often retained beyond optimum life, resulting in higher maintenance costs and poor image, reducing driver morale. |
|
Off-balance sheet financing and creative financial structures. |
Financing affects the bottom line. |
|
Flexible |
Inflexible |
* Please consult your company accountant for detailed benefits information.
