Commercial Vehicle & Equipment Leasing

One of the many important financial decisions of a business owner is whether to lease or purchase motor vehicles for the business. B. Austin Enterprises recommends leasing for several reasons: Leasing strengthens your financial statement and upgrades your company’s image by providing sharper-looking vehicles at a cheaper price. LeaseLeaders.com

Most accountants agree: your financial statement looks rosier with vehicle leasing. Financial benefits of leasing include:

A better tax write off - you can deduct actual payments instead of using a depreciation schedule

Clearer bookkeeping - while a lease is simply an expense on the financial statement, a purchase is an asset and a liability

More borrowing power – with a lease, you can keep lines of credit open for other expenditures; a purchase of a vehicle ties up those loan options

Preventing negative equity - this happens when you purchase a car: sometimes the market conditions make the vehicle worth less than the debt owed on it

When you don’t have negative equity you have less to negotiate in leases

Leasing improve your company’s image as well as its bottom line. When you lease a vehicle, you don’t pay for all of it. You only pay for the part of the vehicle you use. This means:

A lower monthly payment

You can afford a more expensive vehicle to better represent your business (and it’s more fun to drive!)

You drive a new vehicle more often: in most cases a 36 month lease costs roughly the same monthly amount as a 60-month purchase of the same vehicle!