It’s one of the most common questions in car industry, and one that we’re hearing more and more often: “Should I buy or lease a car?”
There are advantages and disadvantages for the both, but in today’s industry there’s no doubt leasing is the way to get the best deal.
Low monthly payments from automotive and private companies, brand new cars offered every couple of years, and the presence of supporting services like fleet management and daily rental has meant that, according to figures from the fourth quarter of 2015, car leasing has increased its share of new-vehicle transactions to 29 percent.
But this is just the tip of the iceberg. Let’s dive in to find out some of the other main reasons why to lease your company car fleet.
Control The Cost Based On Usage
Many businesses can rack up hundreds of thousands of miles on their company cars in no time. For them, owning their fleet would seem like the best option due to the mileage limits of leasing. But the fact is most leases can be tailored to allow for more miles than the standard. Find a high mileage leasing option that's right for you and it’s sure to be worth your while.
Don’t Own a Depreciating Asset
It’s no secret we take much pride and pleasure in owning our own vehicles. But sometimes logic must win over pleasure, especially with something that plummets in value as soon as it leaves the showroom floor. Leasing your company car fleet is like renting equipment to get a job done, rather than purchasing a whole factory.
Protect Against Future Loss
Leading on from the point above, leasing not only means you don’t have to worry about depreciating value, but also the more unexpected market changes. In such a rapidly advancing industry, where many new models are coming out every quarter, leasing can protect against further depreciation and loss by fixing the return price upfront.
Low Barrier To Entry
For some small and even medium sized businesses, purchasing a fleet of company vehicles can be a significant chunk taken out of their disposal income. You can get into a leasing contract for much less, with generally low monthly costs and short term agreements. That means more available cash and less stuck in fixed—and let’s not forget depreciating—assets.
Quicker, Easier, & More Convenient
Leasing is a good deal for both the buyer and trader: the buyer pays significantly less for the same benefits as owning a vehicle, and the trader receives a well kept vehicle back at the end of the contract. What’s more, the trader wants the possibility for the customer to make repetitive purchases, are so the relationship is honest and free from hidden surprises or extra fees.