Automobile Mania

Car leasing is a popular option for modern businesses.  This is a cost effective way to acquire and maintain a fleet of vehicles for business use. 

As with any other business service there are advantages and disadvantages to car leasing.  To help you decide if this option is right for you here are the basic pros and cons.

The Pros

• The main benefit of car leasing is that it offers lower costs for your business. You will be able to get the vehicles you need for essential business use without having to pay for the total value upfront.  This means you can get the right fleet with affordable monthly payments.
• Car leasing agreements tend to have low down payments. This is ideal for businesses that are just starting up or those that have limited budgets to work with.
• Monthly payments are fixed in most cases.  This will mean you know exactly what you need to pay each month for your car leasing which makes budget planning much easier.
• Car leasing is a good option when finance is not available to you.  If you need to acquire expensive executive vehicles or a build a large fleet then car leasing may be your only option if you do not already have the capital.

The Cons

• You will need to fulfil your contractual obligations.  This means keeping the leased vehicles well maintained and paying the monthly instalments on time.  If not then you could lose your contract.
• At the end of the contract you may have to pay a final balloon instalment.  If your business has changed over the term of the contract this may no longer be the right option for you.
• Mileage restrictions can pose a problem if you have a high mileage business.
• Overall the pros outweigh the cons for car leasing making this a viable option for businesses of all shapes and sizes.