Many leases have mileage restrictions. Going over the alloted miles can cost you extra money when you turn the cars in.
Get some pricing on leases and what the restrictions are for mileage, what the cost of the lease is and how much the lease terms (calendar) are.
Compare those numbers with any purchase incentives that may be offered for comparable vehicles. If your vehicles are going to be high mileage vehicles in a short calendar time frame you may want to consider purchases. You will not know for sure until you do the numbers side by side.
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.
Business Money Today
I do not have a vechicle. I have two people who works but need ways to get to other clients. I can not get other clients until i get this taken care of. My business is on hold at this time. How do i get funds for this? Can my business partner up with a car dealer in order to get reduced prices?
We are growing our small business and planning on adding 2 additional service vehicles. As a small business in a questionable environment, capital preservation is critical to us. Which is more beneficial for a small business - Leasing or Buying the vehicles? Is there a good web site for analyzing the benefits or comparing the costs ( short term and long term ) for each of these options.