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Leasing a car for a business

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Leasing a car is rarely a good choice for an individual, but it can be a great choice for a business. Unlike buying a car, leasing can allow a business to keep their transportation costs low while giving them a lot of flexibility.
A car lease can be an excellent choice for a business that needs to provide for its own transportation without relying on employee vehicles. Rather than paying employees for the miles they put on their personal vehicles, it is possible to pay less every month by having a company vehicle that can transport employees and/or equipment and supplies.
Why lease a vehicle?
Leasing a vehicle is a less involved process than purchasing one, making it a better choice for businesses that have never had a company vehicle before. When leasing a vehicle, a business only has to agree to a contract that can last as little as twenty-four months. This allows a business the opportunity to try out having a company vehicle and judge its effects on the company budget. In addition, if the needs of the business change, the car or truck can be sent back to the dealership within a few months without much hassle.
In fact, the fact that vehicles can be obtained and sent back easily is one of the biggest advantages that a car lease has over purchasing a vehicle. It usually takes just a few minutes for a business to lease a car (or even a fleet of cars). Each month the business makes a payment, but this payment is usually much less than it would have paid if it was purchasing the vehicle. Most importantly, when the business is done with the vehicle, it simply has to turn the car in. This means that a business will not get bogged down dealing with vehicle maintenance. A business can even start a new lease with a new vehicle the day it turns in the old one. A company does not have to deal with the time, expense, and hassle of finding a buyer for the used vehicle.
Leasing a car means a business will have fixed car expenses throughout the life of the lease. By leasing a new car with a warranty, it is possible to know exactly what the maintenance costs for the vehicle will be upfront. Any business that needs to have fixed every months can appreciate this. Having a car lease means the only variable transportation expense that a business needs to be concerned with is the cost of gas and oil changes.
Does my business need to lease a car?
Of course, it is important to determine if a company vehicle makes sense for your business. Many companies like the professionalism that comes with having deliveries made in company cars rather than personal vehicles. Even if there are no issues with reimbursing employees for the miles they drive, it can still be a good idea to know exactly how much the company will be spending on transportation each month.

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