Need car(s) for your company or business. Get it on lease, reasons:
* For business, leasing allows you to drive a expensive vehicle for less money
* Lower repair costs (With a three-year lease, the factory warranty covers most repairs.)
* Replace the car every 2-3 years.
* Pay less tax.
Leasing makes it easier to get more car for less money. It means low or zero upfront payment and lesser monthly amount for the same vehicle. You are essentially paying for a portion of the car, instead of buying the entire vehicle.
A car which ages 3 years or less than 3 means low maintenance and repair, majority of car manufacturers offer bumper-to-bumper warranties for three-year. A three years lease keeps you under warranty, hence low repair and maintenance.
Leasing allows your corporation to have a new car every 2-3 yea. Availing this facility with the purchase-sell-purchase option can cost significantly higher.
Leasing offers tax advantages in two ways.
i. The main tax advantage is that corporation can deduct the cost of leasing and operating the car for business, from its revenue and save taxes. However, personal use of the company car will dilute the tax benefits. For example, your company has provided you with a leased vehicle to be used for business purposes. The Internal Revenue Service views the business use of a vehicle as a business expense of your employer. They also view the personal use of the vehicle as a taxable fringe benefit to you.
ii. Leasing gets you more tax benefits because you pay sales tax only on the lease payments rather than on the full price of the vehicle.
I have been writing content since last 3 years.
Car Leasing
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