When buying a new car for business purpose, one may wonder if it is better to lease the car instead. Below are some basic factors that one should consider before choosing one among buying and leasing.
1)Payments:- When you buy a car, there will be a need of taking a car loan and you have to repay the loan even the car’s value goes below the loan amount (for instance in case of an accident). On the other hand, when you lease a car, the residual value at the end of the lease can be lower than the initial lease cost, which means that if you get a closed lease you can walk away without paying anything. Also, some leases don’t require a down payment, but in a car loan deal you will always have to pay a down payment.
2)Uses Limit: – A leased car comes with uses restriction and you can only use the car up to a previously fixed kilometer limit. Exceeding that limit means that you have to pay heavy extra charges levied on each extra kilometer. On the other hand, when you buy a car, you remain free to use it as much as you want without any restrictions. Thus, before taking a final decision in this regard, figure-out your total approximate uses from this prospective business car.
3)Maintenance: – The routine maintenance will always remain important no matter what you choose between buying and leasing. However, if you own the car, it is not necessary to get repaired each and every fault in your car, unlike the leasing in which you have to maintain the car in its original shape and condition.
4)Ownership: – Buying a car ensures that it will be all yours as soon as you replay the loan amount and you will have an option of reselling it. While, when you lease a car, you have to give back the vehicle to the leaser.