1. Tax Advantages
The most notable benefit of corporate car leasing is tax advantages. If a business decides to lease cars for company purposes, there are numerous deductibles based on different expenses. For example, businesses can deduct mileage or even maintenance fees. It would also be beneficial to research specific state tax laws to capitalize on as many credits as possible. In some states, businesses might be able to earn tax credits for the types of cars they lease. One word of caution: if you plan to take advantage of this opportunity, it’s essential to keep track and itemize every expense and mile, with corresponding dates. Come tax season, it will make filing with Uncle Sam that much easier.
2. Saving Money
There is a significant financial difference between purchasing and leasing a car – especially for businesses. Considering how most businesses function on their current revenue and profits, buying a corporate car does have the potential of becoming a financial mistake. When a company decides to lease a fleet of cars, it’s not only a safer financial decision – it can even help save money. Typically, leasing monthly payments are much cheaper than financing a car outright. On top of this, depending on the leasing contract, some maintenance and repair fees will be covered.
3. New Car After Each Lease
When purchasing a business car, while there is more flexibility and control over the physical car, it places company in a pickle. At this point, a car becomes a business asset and, therefore, requires more attention, especially when planning to sell it. Corporate car leasing not only is hassle-free, at the end of a leasing contract, employees or business owners can return the car to receive a brand-new one. This is certainly more cost effective and beneficial than purchasing a new vehicle and waiting seven-to-eight years to receive a positive return on investment.
The Convenience of Leasing
Given the financial stipulations, alongside finding a financial institution that’s willing to work with a business, purchasing a car is not always feasible. It’s clear that corporate car leasing is simply more convenient. Not only can corporations and employees capitalize during tax season, they also can receive new cars after each lease, without having to stress about selling a car.
Contact us today at Corporate Fleet Services to discuss the numerous lease options we have available.