Leasing a car through a business can be a great way to get a vehicle that you may not be able to afford otherwise. It can also be a great way to get a car with all the bells and whistles that you want without having to pay for it all upfront.
However, there are a few things that you should know before you lease a car through a business.
What Are the Ways to Lease a Car through Your Business?
1. Open-Ended Business Car Lease
With an open-ended lease, you’re essentially leasing the car for an agreed-upon monthly payment, for an agreed-upon length of time. At the end of the lease, you have the option to purchase the car for its pre-determined residual value, or simply return the car and walk away.
2. Close-Ended Business Car Lease
With a closed-ended lease, you’re again leasing the car for an agreed-upon monthly payment for an agreed-upon length of time. However, at the end of the lease, you do not have the option to purchase the car – you must simply return it.
So, which type of lease is right for your business? Ultimately, it depends on your specific needs and circumstances. If you’re looking to keep the car long-term, or you’re worried about the car’s value depreciating over time, then an open-ended lease may be the better option. However, if you’re only looking to lease the vehicle for a short period, or you’re confident in the car’s residual value, then a closed-ended lease may be the better route.
What Are the Benefits of Leasing a Car through Your Business?
1. Track Mileage and Fuel Expenses Easier
You can easily track your mileage and fuel expenses when you lease a car through your business. This is important for two reasons. First, it allows you to keep tabs on your business expenses and ensure you’re not spending more than you can afford. Second, it can help you save money on taxes.
2. Access Newer Car Models
One of the most significant benefits of leasing a car through your business is that you’ll have access to newer car models. This is important because it means you won’t have to worry about your car breaking down as often. Additionally, newer cars tend to be more fuel-efficient, which can save you money on gas.
3. Establish a Better Brand Image
If you’re trying to establish a better brand image for your business, leasing a car is a great way to do it. Having a nice car will make your business look more professional and successful. Additionally, it can help you attract new customers and clients.
4. Get Tax Deductions
Another big benefit of leasing a car through your business is that you may be able to get tax deductions. This is particularly true if you use the vehicle for business purposes. Be sure to talk to your accountant to see if you qualify for any tax breaks.
5. Enjoy Lower Monthly Payments
One of the best things about leasing a car through your business is that you’ll usually enjoy lower monthly payments. This is because companies typically get better deals on leases than individual consumers. As a result, you can save a significant amount of money each month.
Leasing a car through a business can be a great option for those who need a vehicle for business purposes. It can be more cost-effective than buying a car outright and offer flexibility in terms of contract length and mileage allowances. However, it is crucial to research and compare different offers before signing any lease agreement.
If you need to lease cars in Toronto, LeaseAxel is the best partner for you. We offer commercial leasing services for businesses, helping them with their transportation needs. Get started by filling out our application form today.