Should I buy or lease my company car?

leaseacar

Should I buy or lease my company car?

You need a new company car. Should you buy or lease? Generally speaking, a lease is preferable if you only expect to use the vehicle for three years or less, won’t put excessive mileage on it, and don’t want to make a large financial commitment upfront. However, leasing may not be for everyone. If you are wondering if you should lease your company car, then you have come to the right place at Pfaff Leasing for answers. Read on to learn more about this. 

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How much money do you have available upfront?

Another consideration when determining if you should lease is knowing how much money you have for a down payment. Typically, when you lease a car, you can have less money to put down when you sign the contract. Some leases do not require you to put any money down when you less the car. The less money you have as a down payment means that you have a higher monthly payment. Determine whether or not you have available funds to spend upfront to lessen your monthly cost.

Determine how you will be using the vehicle  

When using a leased vehicle for business purposes, a leasing company may dictate when and how you use a leased vehicle. You may be limited in the areas in which you can drive. This may not be a huge concern as you may not have a need to drive to those areas, but you should be aware before you enter a lease. You should also make sure that you are able to use your leased vehicle for business. Your Pfaff Leasing representative will work with you to tailor your lease agreement to your specific needs.

How many kilometers do you plan to drive per year?

You need to understand how far you will drive the car and how many kilometers it will rack up. Leases typically come with a set allowance of kilometers per year. This means that when you return the car, it must be at that or under.

There are many advantages of leasing a car for business over buying one. If you are wanting to learn more about this, we encourage you to get in touch with a Pfaff Leasing representative today.

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