What advantages are involved with leasing company vehicles?

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What advantages are involved with leasing company vehicles?

Why should business owners go with leasing over owning company vehicles? Buying a car means you have to pay a loan over a specified period of time, and you will have to pay this loan even if the value of the car drops below the amount on the loan. The most common scenario where this can arise happens when the car crashes. Despite the accident, you still have to pay. Car leasing differs in the sense that the residual value towards the end of the lease can actually lower the overall cost to you. As a business owner, it may make perfect sense for you to lease your company vehicle. If you operate a sales team that needs to be on the road constantly, this leasing a fleet of business vehicles can be highly beneficial. At Pfaff Leasing, we can assist you with tracking down your next company vehicle, or fleet of company vehicles. With locations in Calgary, Vancouver, Montreal, and Toronto, you have ample opportunities to locate the best vehicles for your business operations. In this blog, we share some information about a few of the advantages that are involved with leasing company vehicles. 

Click here to get in touch with our commercial leasing representatives at Pfaff Leasing. 

Makes it easy to stay competitive

With car leases, you can remain competitive over the long term because as the car gets outdated, you can simply choose a newer model. This looks good for your business image. In addition, you can often upgrade to a newer vehicle if the need arises for a newer and more updated vehicle. However, when you buy a car through a car loan, you can’t upgrade as easily because you’ve locked yourself in on the car. This is especially beneficial for companies that use vehicles with decals on them. When you lease your vehicle fleet, you can make sure that you constantly have newer vehicles out on the roadways showing off your brand.

Commonly, you can write off your company vehicle come tax time 

Every business owner understands how important tax deductions are. You should first speak with your tax representative, but in most cases, you can deduct this. However, you will have to prove you drive the company vehicles a minimum of 50 percent of the time for work-related service. The car leasing payments can be deducted, but with car ownership, only the interest on the car loan can be deducted.

It can be easier to get approval 

Ever tried to get a loan from the bank? If so, you know how hard it can be with mountains of paperwork, and even then, you don’t know if you were approved or rejected until several days later, and in some cases, it can take even longer. With leasing, there’s no such red tape. Many times, you can get approved within a day, depending on the leasing company. At Pfaff Leasing, we understand that business downtime is not a good thing. It is for this reason that we can provide quick approvals for our clients!

No hassle of selling the vehicle 

Once it’s time to move on to the next vehicle, there’s no time spent worrying about how to sell your car. Instead, the car goes back to the leasing company, and you’re free to pick a better, more updated car. In some cases, you can decide to buy the car at the end of the lease for a fair market price, but you can also leave it as it is. As a business owner, having to sell your cars when their lifespan has been reached is a less-than-pleasing situation. When you lease your company vehicles, you can simply drive them back into the leasing company and get into newer ones!

As you can see, there are many advantages that are involved in leasing company vehicles. If you are interested in leasing your company vehicle, or a fleet of company vehicles, then we encourage you to continue browsing through our website or get in touch with a Pfaff Leasing representative.

Click here to find our contact information or speak with a Pfaff Leasing representative.