Need a luxury car for your business? Should you buy a new car or lease? Know whether luxury car leasing makes more sense than buying.
“Should I buy a new luxury car or lease?” This is one of the biggest dilemmas for any business that is considering using a prestige car for commercial purposes. However, most businesses prefer luxury car leasing because of its significant cost advantage. But that isn’t all. Leasing a business car offers a greater value than owning one.
Here’s why taking luxury cars on lease for business purposes is a better proposition.
Create a Powerful Brand Impression
With luxury car leases, businesses can build a powerful brand image because as one vehicle goes out of trend, you can choose a new model. So, every 1-2 years, you’d be driving a newer luxury car or using it for commercial purposes. This creates a positive impression of your business's financial credibility and professionalism – influencing your clients and stakeholders.
But when you purchase a new car through financing, you potentially get locked in through the loan tenure. This makes it difficult to upgrade to a new car easily as a lot of financial commitments are involved.
Lower Monthly Payments are a Big Advantage
Prestige car lease is often a more economical way of using the vehicle for business purposes or personal use. Many small businesses and startups do not have the financial strength it requires to own a premium car, paying hefty EMIs every month. By taking the car on a lease, you can save more money because it involves lower monthly payments than a car loan.
Furthermore, businesses do not have to bear the cost and hassles of maintaining the car, paying taxes, getting the vehicle registered, etc. Typically, your lease contract will include regular maintenance. Registration costs, taxes, insurance, etc. are the responsibility of the leasing company. So, you can be assured of greater cost savings.
Get Approved Fast & Easily
For businesses, especially startups and small enterprises, it can be intimidating getting an auto loan for a luxury car. Whether or not you will be approved for financing depends on the financial stability of your business and credit history. Additionally, the process requires a lot of documentation and time – typically 7 days to get your auto loan approved.
With a business car lease in London, you can book and drive off in a prestige car in less than 24 hours. The leasing procedures vary from one company to another but are often less cumbersome and time-consuming than getting a car loan.
Vast Selection of Luxury Cars to Choose from
One of the biggest reasons why businesses prefer to take a luxury car on lease is the option to choose from a wide range of makes and models. Whether you want an exotic Bentley for lease or an executive-class Mercedes Benz, there are choices galore. From mid-range prestige cars to lavish high-end vehicles, good leasing companies offer you an extensive fleet of luxury cars to choose from.
Depending on the purpose of leasing a prestige car for your business, there are excellent varieties too – executive sedans, supercars, convertibles, SUVs or even sports car lease if it matches the personality and image of your business. And most interestingly, you can drive a new luxury car every 1 or 2 years! That means whenever the lease tenure ends, you can return the car and upgrade to a newer vehicle.
Tax Benefits of Leasing Cannot be Overlooked
As a business owner, tax benefits would be one of your primary focus areas. And in most cases, luxury car leasing is tax-deductible. However, you should talk to your tax representative first to ensure you can enjoy tax benefits on such leasing. But you will need to present that the vehicle is being majorly used for business-related services.
Now that you know why car leasing is a better alternative than owning one, let’s understand when you should lease:
- If you are planning to have a luxury car for not more than 2-3 years
- If the annual mileage your business car runs is less than 12,000
- If you want to drive a prestige car for business purposes but do not want to take the hassles of owning one – maintenance, insurance, taxes, resale, etc.
Under all these circumstances, a business car lease in London makes absolute sense. With greater cost savings and long-term value, it ensures a worthwhile experience.