Is Vehicle Leasing A Sound Financial Selection For Businesses ...

If you need a car, you should consider car leases, since they are actually very advantageous and cost-effective. On the other hand not everyone can accept this method of financing. Buying a car and vehicle leasing both have their own advantages and disadvantages, so you should consider your needs wisely.

Having a car and lease is beneficial to all sorts of businesses. When you buy a car, you will need to make a down payment. When you lease a car, however, you won?t need to make any upfront payments to the dealer. You can also save on costs with the lease car if you get on that?s within the warranty period. The costs of repair will then be shouldered by the manufacturer.

Businesses can benefit from a car lease because they won?t need to obtain a loan in order to pay for it. A business that opts to lease a car will also pay lower monthly payments. This is because when you get a car lease, you will only pay for the use of the car. This will help to reduce the cash outflows leaving you with some cash for other issues. Compared to buying a car, you also won?t pay such a large upfront payment.

However, the car lease automatically pays off in case of an accident or theft. This does not happen when one has acquired a loan to buy a vehicle i.e. it does not come with an automatic gap protection. The great thing about gap protection is that it can pay for the difference between the actual market price of the car and the amount of money still to be paid in the lease. It?s a little known fact that although the insurance company will pay a certain value for the car that?s been in an accident or stolen, there?s still the matter of the money owed to the financing company that granted the loan to buy the car in the first place.

You can make good use of the money you saved in leasing a car as opposed to buying by making good investments with the money. You can funnel these funds into more important aspects of your business or company, or you can choose to buy stocks or mutual funds. One more great thing that comes out of vehicle leasing is that the lease is transferrable. You can save a lot by doing this instead of getting a new lease or buying a car. This also helps to escape the initial hassles or fees and other negotiations. A lot of car leasing dealers now allow this and actually charge a relatively small fee for transfers. In most cases the taxes paid for lease car are spread over a longer period of time compare to the bulk that is paid when one buys a vehicle. These and a lot more are the benefits of getting a car lease.

Find out about the possible financial pros of car leasing with help from LeasingOptions ? Can vehicle leasing be a good investment for your business?

Source: http://articlessurf.com/finance/is-vehicle-leasing-a-sound-financial-selection-for-businesses

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