Buy or lease a car?

What you need to know before you make a decision

Buying things is what we know and what we do every day, so the first intent when needing a vehicle is to buy it. But, have you considered other ways to finance your company vehicle? Are you aware of how beneficial leasing could be to your business? That it might actually be cheaper, more convenient, less risky or more flexible than buying a vehicle?

Read the facts and make your comparison.

The 5 lease facts:

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.

Leasing is for everybody

Buying Buying is the best way to go if you wish to own the vehicle from the start or if you have a financial interest in asset display on your balance sheet. In addition, buying may be the best option for you if you want to decide yourself exactly how long you want to drive the vehicle.

Leasing Leasing is the best option for you if you cannot afford to pay outright the vehicle you desire or if you would like to spread and predict the costs. Moreover, if you do not want to spend time and effort on managing the vehicle instead focus only on your core business activities, leasing is the perfect solution for you.


Calculate the total costs

Buying When you buy a company vehicle you are most often considering the costs of interest, the residual value, insurances and taxes. You calculate your monthly costs based on these components. All costs like damage repair, maintenance and tires are excluded from the sales price.

Leasing If you lease a company vehicle the monthly costs are not only based on costs of interest, residual value, insurances and taxes, but also on the expected costs of damage repairs, maintenance, tyres or time the car spends in the garage. It is all included in the monthly lease price.


Estimate the risks

Buying If you buy a company vehicle, you bear all the risks; risks of non-warranty repairs, the value of the vehicle when you want to sell it again, or of changing interest rates. You are the only responsible party for whatever happens to the vehicle or in regulation.

Leasing If you lease a company vehicle, all the risks are transferred to the leasing company. The leasing company estimates the residual value of the vehicle and bears the risk of damage repairs and maintenance. Whatever happens to the vehicle, the leasing company pays the bills.


Save time and effort

Buying It requires a significant amount of work and time to purchase a company vehicle. You have to find out which car you would like, how to finance it and which dealer to go to. It, however, takes even more time and effort once driving the vehicle. Reporting, administration, appointments for repair & maintenance are tasks inevitably involved when buying company vehicles and may reduce the time to spend on your core activities.

Leasing Leasing actually makes purchasing and managing company vehicles easier. Experienced financial and business experts can assist you in finding the right vehicle for your business and unburden you from all the administrative and management tasks. You can even outsource these tasks entirely to focus only on your core activities.



Buying If you buy your company vehicle, it is yours. You are the proud owner and you have all the rights to determine what to do with it. You can keep the vehicle for as long as you want to, you can use it for any purpose and you can sell it again whenever you want.

Leasing If you lease, you do not own the vehicle. At least not yet. There is always the possibility to buy the lease car you have driven for a specific term at the end of the contract. If you lease, in addition, you are able to drive a bigger and more expensive vehicle than you would otherwise have been able to buy because you spread the costs over the contract term.