Leasing offers important advantages:
Low monthly payments
The monthly lease payment will usually be lower than the payment required by other methods of financing. You can actually afford more of the best with leasing.
No need to tie up capital
Keep your business' cash for future needs, unexpected expenses or working capital when revenues are low.
You can always lease vehicles-you can't lease money!
Most types of financing require down payments of up to 25%, whereas leasing covers 100% of the cost of the vehicle. Most leases require only one or two payments in advance. Get immediate use of the vehicle with minimal upfront costs.
Preserve existing lines of credit
Leasing has no impact on your bank credit lines. Protect your borrowing power for other business needs or opportunities.
Technology is changing at a rapid fire pace. What meets your business' needs today may be obsolete three years from now. Leasing allows you the flexibility to maintain a competitive edge by giving you today's best technology then allowing you to upgrade when the vehicle has outlived its advantage.
Fixed Payments through the term of the lease
Unlike bank lines of credit that usually have variable rates, lease payments are fixed, no matter what happens in the market. By choosing leasing you won't be a victim of skyrocketing interest rates.
Significant tax and accounting advantages
Leasing eliminates the need for complicated depreciation schedules, as lease payments are generally line item expenses on your P&L statement. Since lease payments can usually be treated as a pre-tax business expense you may even reduce your taxes. Paying cash for a vehicle automatically adds 30-35% to the cost when you realize that cash = profits and taxes are paid on profits. Leasing is the right choice! It minimizes demands on cash flow, eliminates obsolescence, keeps your bank lines open, saves on taxes and shelters you from market conditions.