Nowadays, the business car leasing has been an attractive way to finance a car on behalf of the customer and lease the vehicle on monthly rental payments. Many business owners are leasing cars for their business use. In general, leasing is gaining immense popularity among consumers also. Likewise, at the end of the term of a lease the financier gives the option to the customer to purchase the vehicle in return for a final instalment. Car leasing businesses most likely depends upon what kind of business one has owned and its particular size.
There are benefits associated with both business and personal occupation. Similarly, if an employee wants to use his/her car for their own purpose then the salary cost could fund the car on lease and one could also get tax benefits.
Advantages of Business Car Leasing: Some major advantages of business car leasing are as follows:
- Fixed Monthly instalment: A fixed amount of monthly instalment the business contractor has to pay to the company for a specific time period. As a consequence of which after the termination of lease the business would return the old vehicle and buy a new on lease.
- Tax Benefits: Another major benefit are the tax benefits which a business owner can avail There are certain value added tax benefits associated with them provided if the car is used for business purposes.
- No sale required: One can always contact the company for the sale and purchase of the vehicle rather than contacting any external dealer.
- No market value risk: There are no specific market value risks associated with business of car leasing as price hike of market cannot affect the business.
- Advantage of a new vehicle: The vehicles can be kept relatively new and this promotes a successful image of the business.
- Inclusion of maintenance: While doing a business in car leasing one can always include maintenance costs to recover damage and repairs.
- Online selections: The business can benefit from online selections while starting the business lease.
- Comparatively cheaper costs of vehicles: If one needs to run a business for a long period of time then the costs of the automobiles can be found comparatively cheaper.
Given the benefits, business car leasing is particularly useful if one chooses to run a business for themselves as it is highly profitable.