5 Key Benefits of leasing VS buying your fleet vehicles
Choosing to lease over buying your company’s fleet vehicles is common for most businesses. However, this two-way difference poses some important questions. What are the benefits of leasing? Is it economical? Can you save much by leasing rather than buying a vehicle? Whether you have a small business or a large business, one of the biggest expenses is always the cost of your fleet vehicles.
Whether you are purchasing or leasing, this can be a long-term financial commitment for your business. You need to ensure that you are making the right decision and don’t get caught up in the buying frenzy.
- You get to control your costs: If you choose to buy, then you are responsible for all of the costs that come with maintaining and repairing the vehicle. But with lease, in some cases, the contract can include that you won’t be responsible for maintenance of the car, saving you 10-20% in costs.
- You Can Change Models Quickly: You are stuck with the standard model for years when you buy a vehicle. However, a typical average term is three years when you lease, which means you can get an entire fleet of new models after a few years.
- It’s More Hands Off: Managing an entire fleet of vehicles can be challenging, especially if you purchase it. You need to take care of everything from license and tag renewal, title retention payment, paying taxes, and so on. But when a vehicle is leased, you are not the owner, so the company that owns them does all of this.
- More Control of Vehicle Selection: When you are purchasing a vehicle, you are limited by your budget. Due to these budget constraints, you cannot get high-end or more luxurious vehicles. But this is not the case with leasing. You can select the type of vehicle you want and have the entire fleet delivered in a few days.
- Ownership: This is where buying a fleet is more lucrative to those who want to own the vehicles. Leasing doesn’t give you the advantage to own the asset. You will have to keep paying as long as you are leasing the cars. If you own the fleet, at some point, you will pay off the auto loan and completely own the cars without paying anything again.
Over To You:
While buying the vehicle fleet may seem more lucrative, it really isn’t because the cars get old and start breaking down frequently with time. If you replace them, you will have to pay a lot more to get the latest models. Leasing provides you with more flexibility allowing you to replace the entire fleet in a few years without shelling out massive amounts of money.
However, keep in mind whether you buy or lease the fleet, you will still have to purchase auto insurance, so make sure to keep this cost in mind as well. If you want to get economical coverage options for your vehicle fleet, feel free to contact Paradiso Insurance at 860-453-0116.