When you purchase, you are required to pay 100% of the cost of the vehicle, and you usually have to make a significant cash down payment. The burden of price negotiation, purchasing, and used car disposal are your responsibility. To get your money's worth, you generally must drive the car for a longer time, meaning higher mileage and lower resale value. Ownership makes it economically more difficult to enjoy the latest technological advances and the newest styling innovations.
Leasing places the burden of ownership and disposal with the leasing company. One hundred per cent (100%) financing is available, and payments can easily be structured to meet most budgets. Because leasing companies require less cash up front, more of your capital is free for other opportunites. You pay only for the portion of the vehicle that you use during lease term.
Leasing offers a way for business professionals to charge off a large portion as a demonstrable non-personal expense or business cost. For companies, leasing conserves working capital and improves cash flow; it provides a means of simplified record keeping for tax purposes, budgeting, and cost control. Your company's credit lines remain intact and available. Leasing expenses are deducted from gross income before taxes, offering a faster write-off when compared to a purchase. Also, a fleet of shiny new vehicles is a great way to enhance your company's image!