Leasing A Car For Business – Things To Know
When you own and operate a business, there is a definite need to impress your customers, which can often be done simply by showing up in a nice new vehicle.
Having a new car gives the impression that your business is doing well, which is often enough to have customers instantly believing that you have a high level of credibility.
The problem here is that business cars tend to get a lot of miles put on them, making it tough to maintain that new car look, no matter how hard you try.
This is where leasing becomes a very viable option.
Business car leasing benefits
There are several benefits that you can get by leasing a car for business, and it goes beyond the simple aesthetics.
Before you decide that a leased vehicle is the right move for your business, there are some things that you need to consider.
The most obvious of those is the mileage and the length of the lease contract.
Ideally speaking, you are probably looking at 2 years as being an acceptable amount of time for a business car lease, as this will ensure that your vehicle looks and runs well, whilst also ensuring that you can keep up to date with all the newest technological advances.
Prior to leasing a business vehicle, you need to take a serious look at how many miles you are putting on your vehicle in an average week or month.
You can then extrapolate that amount and see how many miles you should be in for when you sign the contract.
A good idea here is to only ever use this car for business trips, whilst maintaining a second vehicle that is used for personal use.
This will prevent you racking up the miles running personal errands every day.
Another thing to consider when leasing a car for business are the tax breaks that you might be entitled to.
Again, it’s worth doing a little bit of investigating into the potential savings before choosing to lease a vehicle.
There are a number of rules and regulations to following when talking about the tax benefits of a leased business vehicle, and while you cannot claim depreciation, there are several expenses related to the operation of the car that can be written off.
It’s a good idea to talk to a tax expert first in order to be able to get as many tax benefits as possible.
We are just starting to skim the surface of the benefits that you can get from leasing a car for business purposes, and we suggest that you do a little more research to find out if this is a decision that makes sense for you and your business.
If you believe that a great looking vehicle is an important part of selling your brand, then picking up a new leased vehicle every couple of years is probably the best way to maintain that look.
You may be able to get a better vehicle than you could afford if you were going in to buy as opposed to leasing.