To lease or not to lease?
Managing your resources
The question of whether it's best to buy or to lease vehicles can be a complex one for organisations. Companies need to compare operating lease payments versus loan, finance lease and/or hire purchase payments, cash flow impacts of each type, depreciation versus tax savings and investment potential. Then there are also purchase, fringe benefit tax, maintenance and disposal costs to consider.
To remain competitive, every organisation needs to stretch its resources ever further. How you allocate yours can make a real difference to your profitability. Here are some questions and answers to consider before deciding if leasing is right for you.
Owning v Leasing
|No end of lease resale risk||Resale risk and disposal|
|Rental structured to kilometre usage||No correlation to kilometres travelled|
|No maintenance risk||Maintenance risk/cost|
|Whole of life cost known||Total fleet cost unknown|
|Total vehicle funded||Usually trade-in previous vehicle|
|Vehicles do not appear on balance sheet||Vehicles appear on balance sheet|
|Lease company's asset||Own an asset that depreciates|
These are just some things that you need to look at when considering whether to lease or own. If you’d like to find out if leasing is right for you and your business, contact FleetPartners today.