Leasing vs. Purchasing Your Car for Your Own Business

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When you start up a new business there are many different factors to take into account, and the car you are going to be using is one of the most important ones. The following are some of the factors to take into account when making this decision.

The Cost

It always makes sense to look at the options for both buying a car and for leasing a similar one. Clearly the cost has got to be one of the biggest issues you consider when making this kind of decision, and you will want to get it right. Some new business owners like the idea of leasing because they see it as a fixed outlay each month. This allows them to budget their car expenses more accurately. When you choose how to pay for a car you either pay for it all up front or else pay for it in monthly loan installments, but you may also have other expenses to cover for repairs and such like. The all-inclusive nature of some leasing contracts means that you can feel confident from the start that you know exactly what you are going to spend each and every month; there are no surprises. On the other hand, you might like the idea of driving a car that you own, and that will be 100% yours once you have paid off the loan.

The Maintenance

One issue that pushes some business owners towards purchasing, and others to a lease contract, is servicing and maintenance.

It can be a pain, as well as an expense, trying to keep your car well maintained, especially if you are doing a lot of miles in it. A reassuring aspect of most leasing contracts is that the entire maintenance issue is taken out of your hands.

Of course, while this is perfect for some businesses, in other cases it may be that the owner wants to take care of maintenance themselves. For example, if you have mechanics in the firm, or know someone who could do the work for you, then it might make sense to keep everything under your control. In either case, it is important to think about maintenance before making a decision, as this could be one of the most important details.

 Leasing vs. Purchasing Your Car for Your Own Business

The Looks

Finally, for a lot of people this is the crucial aspect that is going to drive their decision more than any other.  If you are in the type of industry in which you need to make a strong impression, you will want a vehicle that makes you look good. To get the look you are after you have a couple of different options.

One of these is to purchase a really classy car and look after it well. In this case, you could get a vehicle you love the looks of, arrange performance car insurance, and get a lot of pleasure out of driving it. An excellent vehicle like this could become one of the top status symbols of your company and show your clients that you really mean business.

Another possible idea is that you go with a leasing deal. In this case, you will have the option to change the car every couple of years, and get a brand new one every time. This means that you will be driving a brand new car virtually all of the time, and you can even decide to change models every time as well.

Both of these approaches are smart ways of building up an excellent reputation from the image which your car projects on your behalf. The one which works best for you depends upon your circumstances, attitude to risk and car depreciation, and how cash rich your company is.




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