Leasing a car for your business is a delicate decision. If yours is a small business or a startup, renting a car would be helpful due to its lower cost, easy availability, and other benefits. This article briefly discusses the benefits of leasing a car for your business.

Monthly payments

In case you buy a car, new or used, you must pay cash in advance in whole or in part. On the other hand, in leasing, you have to pay only a part of the residual value. This leads to a lower monthly payment.

Also, the total cost of leasing a car is less than when it is purchased, the lease period is short (usually three years). The cost of the lease is the current value of the car minus its value when you return it. You must pay the interest charged and the charges for the services. If the value of the car when you return is higher than expected, you will have to pay less.

It’s a better value for your money as you can pay for the car at a lower price with a flexible payment plan.

Tax deduction

The taxes to be paid are reduced because you only have to pay the value of the car you use. Also, the interest amount is divided over several months, resulting in a lower monthly amount due.

Plus, because you have the benefit of a tax deduction for leasing a car, it will help you save a few hundred dollars.

Less maintenance

You get the leased car with a full manufacturer’s warranty. This ensures effective corrective maintenance when necessary. Also, if you rent the car for a short time, it is likely to have fewer maintenance hassles.

Guaranteed asset protection insurance (GAP)

By renting a car, you get the benefit of GAP insurance. GAP insurance is part of the lease. GAP insurance covers the remaining part of the value of the car to pay for you in the event it is stolen or completely damaged in a vehicle collision. This value is much less than that of purchased new / used vehicles. For a small business like yours, this is important to take note of.

Purchase option

You rent the car for your business and use it for as long as you want. At the end of the lease period, you must deliver the car to the dealer. You now have the option of buying the car, a new one, or renting another. You don’t need to worry about reselling the car.

As a small business owner, your business is prone to business fluctuations for a number of reasons. Under the circumstances, every dollar you spend is significant. So when it comes to operating a car for your business, leasing may be an optimal option.