Buy or lease a car or company vehicle?
Understand the difference between leasing and buying Â
Many businesses debate whether to lease or buy their cars. Where financial stability and minimising the risk of loss is important, leasing is a very popular vehicle financing approach.
Choose leasing and you can:
- Remove asset ownership and depreciation risk;
- Ensure known, fixed operating costs;
- Provide cash flow certainty around a significant business expense, and;
- Improve your balance sheets.
Know the benefits of leasing
Known, fixed costs Remove the hassle of unexpected cost spikes during servicing and other vehicle expenditure with a flat monthly lease rate.
Off-balance sheet As LeasePlan is the owner of the vehicle, you can remove the vehicle asset from your balance sheet to streamline reporting processes.
Conserve capital No capital outlay means the funds that were allocated for vehicles can now be put to other use.
Improved cash flow By not having to accrue capital for purchasing vehicles in a lump payment, cash flow will become more even each month.
Tax advantages Rental price is tax-deductible on operating leases where the cars are used to generate taxable income.
No extra security requirements No extra loan covenants or guarantees.
Upgrade assets more regularly Reduced running costs, improved driver morale and corporate image as well as improved safety and technology.
Volume discount benefits Leverage our purchasing power, not just on vehicle procurement but on all running costs as well.
Total package Include all essential fleet management services, consultancy and advice from fleet management experts.
