RK Auto Group Recommendation: Leasing a Car For Your Business is the Way To Go.
One of the many important financial decisions of a business owner is whether to lease or purchase motor vehicles for the business. RK Auto Group recommends leasing for several reasons: Leasing strengthens your financial statement and upgrades your company’s image by providing sharper-looking vehicles at a cheaper price.
Most accountants agree: your financial statement looks rosier with vehicle leasing.
Financial benefits of leasing include:
- A better tax write off - you can deduct actual payments instead of using a depreciation schedule
- Clearer bookkeeping - while a lease is simply an expense on the financial statement, a purchase is an asset and a liability
- More borrowing power – with a lease, you can keep lines of credit open for other expenditures; a purchase of a vehicle ties up those loan options
- Preventing negative equity - this happens when you purchase a car: sometimes the market conditions make the vehicle worth less than the debt owed on it
- At RK Toyota, we have learned that when you don’t have negative equity, you have less to negotiate in leases
RK Subaru affirms: leasing improves your company’s image.
When you lease a vehicle, you don’t pay for all of it. You only pay for the part of the vehicle you use. This means:
- A lower monthly payment
- You can afford a more expensive vehicle to better represent your business (and it’s more fun to drive!)
- You drive a new vehicle more often: a 48-month lease costs the same monthly amount as a 60-month purchase of the same vehicle!
Make sure to lease from a reputable dealer, such as RK Subaru or RK Buick, for consistent, high-quality service.
When you lease a vehicle, you form a strong relationship with the leasing representative, because you work with the same person on every lease. Our agents at RK Toyota, RK Subaru, etc. know that leasing provides a satisfying experience as well as great financial benefits to your company.