July 12, 2019

7 common preconceptions about car leasing

Do you need a vehicle to operate your small business? Wondering what finance option is right for you? Small and medium-sized companies (SMEs) and the self-employed in particular often hesitate to consider leasing versus buying a car.

Here are the facts behind the seven most common preconceptions about car leasing, so you can make the right choice for your small business.

1. Leasing a car is expensive

Maybe you're seeing lots of great deals out there to buy your own car. But have you taken into account that the purchase cost doesn't include repair and maintenance, insurance, taxes, interest and depreciation? Leasing covers all these costs for a fixed, low monthly fee.

2. Leasing is unpredictable

Worried that leasing costs become hard to predict when your business needs and budget change? In fact, you can adapt your mileage, vehicles and contract duration to your changing business needs. And because your leasing costs per month are fixed and include service and operating costs, you can better forcast and plan your business's cash-flow.

3. Leasing is complex

Buying a car may feel more familiar and straightforward. But when you lease, the leasing company takes on the bulk of the administrative burden for you. They make the process of selecting your ideal vehicle, customising the contract, ordering the car and managing costs simple and hassle-free. And once you hit the road, you benefit from 24/7 access to driver services and support.

4. Leasing is inflexible

But what happens if you need to add more cars or end your contract before it's up? New leasing options like short-term lease, offer SMEs the flexibility and freedom they need to operate in today's uncertain world. Your lease contract changes along with your business needs.