Tag: fleet vehicle

No two businesses are the same. Some businesses depend on leasing their fleet vehicles while others choose to buy or finance them instead. Here are a few points to consider with buying vs. leasing fleet vehicles:

Leasing and buying both have perks in terms of affordability, but for different reasons. Let’s compare:

• Tax benefits: Buying a vehicle can provide your business with potential tax breaks that you won’t get when you lease.
• Equity: When you purchase a fleet vehicle, you can build equity that you can use to refinance the vehicle later or trade in for something new. You don’t build equity in a leased vehicle.
• Depreciation: New vehicles depreciate in value dramatically for the first couple of years after purchasing. If you don’t have much money to put toward a down payment, you could end up with little equity for your purchased vehicle until a few years later.
• Up-front costs: Leasing generally [...]