- Posted 29 Dec
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If you’re going to be using your vehicle mostly for business purposes, an Operating Lease may be a good option to finance your car. This type of lease is best used when you will be using your car for your business more than 50% of the time.
The more you use your car for business travel, the more this type of lease makes sense, as more miles can reduce your lease payments.
Not many business owners are aware of this option for financing a car, but this can be a great way to access a car and save money as well.
As with any type of car finance, you should look into all possible options. If you’re a business owner, this type of lease may be your best bet.
Here are just a few benefits of an Operating Lease:
- There is no capital outlay to buy the car
- Over the term of the lease, payments are fixed
- The Lease payments are totally tax-deductible
- As a business owner, you greatly decrease your overall risks
This type of lease can be ideal for the small business owner, as it limits your responsibility with regard to the vehicle. You never actually own the car, but you do benefit from a manageable lease that affords you all the same benefits as car ownership.
You are leasing the car for a fixed period of time. You pay the monthly rental for a set period of time, and once that period has been completed, the lender gets the car back.
The lender owns the car throughout the entire duration of the lease.
If you want to save on your taxes, an Operating Lease is for you
One of the main benefits of an operating lease is that your monthly repayments are fixed and they are totally tax-deductible. You don’t have to lay out a lot of capital out front, and this allows you to track your cash flow much more efficiently.
When the lease is done, it’s done. There are no extra payments at the end of the lease term.
An Operating Lease is for you if you want to have access to more operating capital
Instead of spending your money on cars for your business; you can use that money for other areas of your business. This allows you to have access to more of your operating capital, allowing you to invest it where needed.
Talk to your car dealer about the options for an employer based operating lease. Remember, you will not own the car, but you will be able to take advantage of having a car at your disposal for the purposes of your business.
If you need help with finding the right car to fit in with your operating lease, get in touch with our team today. They can even arrange the finance options for you too.