phanio
483 posts since
Apr 7, 2009
2.
Re: Company Vehicles "Buy vs Lease" Nov 2, 2009 7:04 PM
Comparing the options is really simple. Take a spreadsheet and lists the costs (total costs) of each - on seperate lines than compare them. Also, think about other costs. One here that was mentioned was miles on lease vehicles (these can be negotiated) but think about who will provide the maintenance and who will get the depreciation write-off.
If you don't have to put much down to purchase the vehciles - that could be just as cost effective as leasing. Leasing could benefit you in that - even though they amortize the vehcile over the life of the unit (just like a vehicle loans would) they can reduce the monthly payment as they truncate the principle - substracting out the residual value. But, leasing could also have more back-end expense as mentioned with the miles fees as well as other fees they may stick in there (really read the contract before signing).
lastly, talk to your insurance company and ask them to quote both options. If one is significantly lower than the other - that could be one measure for you to consider.
There are many loan to lease calculators on the web. We have been thinking about creating one for our website. A simple web search should bring up all types of calculators.
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