Leasing a car versus buying outright: which is better for you?
With the rising costs of owning and maintaining vehicles, leasing and contract hire is a viable and cost-effective alternative to vehicle ownership which provides a range of benefits for both personal and business customers.
As you further develop your business one of the biggest decisions you wil have to make will be whether to buy or lease. This goes right from your premises, your office equipment.
In some cases the argument for owning an asset outright are strong, for example property but the key difference between this and cars or other business assets is that property appreciates in value.
If it appreciates, buy it. If it depreciates, lease it
J.Paul Getty, famous US industrialist
The biggest benefit to buying a car is that you will actually own it outright someday. Once you have the car paid in full it will be yours to keep for as long as you wish. You have the benefit of having a car without a payment. You will also have the option to sell it at anytime if you wish.
In partnership with BusinessesForSale.com, Affinity Leasing can offer you discounted vehicle leases, tailored to suit your requirements.
Visit the special page set up for BusinesesForSale.com users on the Affinity Leasing website:
http://www.affinityvehicleleasing.com/Businesses-For-Sale.html
...and log in at the top right hand side with the user name Business and the password Discounts to secure the best prices.
Benefits of leasing
Lower out-of-pocket costs for maintenance is one of the big benefits of leasing as opposed to buying. When you lease a new car there is a good chance that nothing is going to go wrong with it over the life of the lease. In most cases the lease will last for three years. Within this time period, in most cases, a car will perform just fine. You will not have to take money out of your pocket to pay for costly repairs or even new tires. Once it is time for the tires to be replaced it will probably be about time to turn the car back in to the dealership.
In addition, when leasing a car you will never experience negative equity. You are not forced to absorb the negative equity when you turn the car in as you would when you went to trade a car in after three years. You are basically paying for the depreciation of the car during the lease period and nothing else. One of the major drawbacks of leasing a car is that you will always have a car payment. There will be no point where you pay the terms of the lease off and get to keep the car. After the lease is up you must turn the car back in and lease another.
Tax advantages
Due to the nature of the tax advantages of leasing (i.e. the full rental costs being offset against profit), and taking into account the opportunity cost of investment, the lease will usually work out cheaper than if the asset were bought for cash.
Maintains credit lines for other use
Equipment can be acquired without impacting other credit lines, such as loans and overdrafts, making further borrowing easier.
Leasing makes perfect financial sense: Why tie up a large lump sum by buying a car outright when you can spread the cost and pay monthly? You can have a brand new car, for less than the price of the depreciation alone.
Conserve cash reserves
Money is kept 'in the business' rather than in depreciating assets. Leasing allows the customer to save resources for other purposes, such as new business opportunities, unexpected needs, business development or marketing. The customer can tailor the timing of the payments to suit their expected cash flow including seasonal cash flow circumstances. (For example, an initial payment holiday).
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About Affinity Leasing
We are proud to be market leaders with our cutting edge scheme – 7.5 million people have this facility available to them. We use our buying power to achieve high levels of discount with the manufacturers, and we pass all of this on to you through reduced rentals. You can call to receive friendly impartial advice from staff based in the UK, or, if you prefer, you can log on to our dedicated Businesses For Sale partner website.
We can offer every type of lease: for those wishing to pay from a company account the choice is contract hire or hire purchase. If you prefer to lease personally, you can chose from personal contract purchase or personal contract hire. Some quotes are available with £0 deposit.
- Discounts specifically negotiated for members: up to 45% off with some manufacturers
- Discounted servicing available
- Current special offers
- Quotes available on any make and model
- Online insurance quotes, including GAP and payment protection
- Any type of lease available
- Typical deposit of just three payments, some with zero deposit
- Leases varying from two years to four years
- A bespoke website with easy and detailed offers
- A dedicated UK based call centre to discuss all your needs
- Accident management
- Leases typically include Road Fund License for the duration of the agreement on contract hire, hire purchase and personal contract hire, and for the first year of the agreement on personal contract purchase
- Manufacturers warranty
- Free delivery to anywhere in in the UK
- Road side and breakdown cover
