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Question:


As a business owner, is it better to buy or lease a car?
-CEOCraig


Answer:


This question comes up a lot from drivers, some interested in business use and others just looking to get to work or motor around town. Leasing is generally the better option if you want a new vehicle every few years because leasing involves lower up-front costs than buying – and sometimes none at all – and you’ll almost always have a piece of machinery that’s reliable and fairly new. The down side is that leasing contracts require additional charges after going over a certain, often small number of miles, so if your business involves lots of driving, then it might make more sense to buy. Leasing also can result in further charges for damage, so if your line of work is something that’s typically unkind to a vehicle, then that could also be a reason to buy. As for taxes, the write-offs for depreciation and sales tax are frontloaded with a purchase and are taken monthly with a lease, but the expenses that are written off on a purchase are frontloaded, too.
-Conrad de Aenlle



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