It’s understandable why people value ownership. Those possessions you can truly call your own – your clothes, your furniture, your gadgets, your cookware, etc. – represent a big part of you, and you feel a great sense of satisfaction in knowing that they are yours. But ownership isn’t as important to a business, at least not where possessions like vehicles are concerned.
Vehicles are, as far as investments for small businesses go, expensive. It doesn’t make sense to pay the full price of a vehicle, just to be able to “own” it. Ownership of a vehicle isn’t as important to a business as maintaining healthy cash flow, reaping tax advantages and projecting prestige. That’s why if you’re on the market for a new fleet lease your cars today rather than buying.
As business people ourselves, we at AUTO ONE Group understand the value of making wise financial decisions for a company, and so we’ve done the hard work of comparing leasing to financing a fleet with loans. We looked at it from all angles and here’s what we’ve come up with. What follows is our six-point argument for why you should consider leasing your next business vehicles.
Reap the Tax Benefits
As per Turbotax’s take on leasing company vehicles, the CRA lets you deduct the percentage of the lease payments you use for business, to a very generous $800 a month (or nearly $10,000 annually). For instance, say you used your company car 70% of the time for business and paid $5,000 annually – you could deduct 70% of that lease cost, or $3,500.
That’s a significant deduction for a business and could help ameliorate the blow tax season takes. Businesses who purchase their fleets don’t reap the same tax benefits. A lot of financial experts out there recommend fleet leasing for this reason alone. But, of course, we still have five more points to get to!
Free Up Cash Flow
Monthly lease payments are often quite a bit lower than loan payments on a purchased vehicle. This means, month-to-month you will have more money to reinvest into the business – to improve, to scale, to market and to hire talent. You’ll have that all-important cash flow.
And it bears mentioning, even though it’s obvious: a leased fleet vehicle grants you virtually identical privileges to a bought car. You drive it as though it’s your own. You use it as though it’s your own. And it serves your business’ needs as though it’s your own. The only difference, at the end of the day, is that you pay less for it month-to-month.
Once you’re hooked up with AUTO ONE Group, we’ll ensure that upgrading, choosing and acquiring any fleet vehicles you need is a total breeze. You don’t have to worry about selling your vehicle, siphoning hours from your busy schedule to figure out how to get rid of it, or how to get your hands on an affordable replacement.
Our knowledgeable representatives can help with all of that. Consider us part of your team, working for you to make sure you have the best vehicles possible, at the best price possible with as little effort on your part as possible. Just drop us a line, or visit one of our Vancouver, Halifax or Toronto fleet leasing locations to learn more.
Take Advantage of Technology Advancements
Automobile technology moves at a breakneck pace, especially in the following three areas: safety, fuel efficiency and technology. When you purchase a vehicle, you’re stunted in time for at least seven years, or until you get around to upgrading. In that time, safety features will have improved markedly, fuel efficiency will have saved other drivers significant cash at the pump, and your vehicle will look and feel dated.
Leasing allows you to upgrade more frequently, as lease terms tend to last around 2-4 years. That means you’re constantly driving the cutting the edge of what the automobile has to offer. You’re saving money at the pumps; you’re strapping your employees into ever-safer vehicles, and your fleet always looks modern.
Choose From a Wider Selection
Because lease payments are lower, you’re able to afford a better class of vehicles than you would otherwise be able to by buying. This gives you a wider range of vehicles to choose from, allowing you to explore different makes, models and types that best suit your business.
For instance, your business doesn’t have to settle for a Ford F150 when what it really needs, in terms of power and capacity, is a Ford F450. You might not be able to afford the latter if financing your vehicle, but you probably can when you lease. Especially if you lease used, as we do here at AUTO ONE Group. The bottom line: get the car you need, not just the car you can afford.
Afford an Impressive Vehicle
The quality of your company vehicle says a lot about your company. Maybe that shouldn’t be the case, but that’s just the way it is. If, for instance, you’re in the business of selling high-end countertops, you can’t really roll up to a client’s place driving an old beater. If your business is built around prestige, you need a vehicle to reflect that.
Leasing gets you behind the wheel of that prestigious vehicle without putting your business in the red. It’s a fantastic business hack for looking like a million bucks, but paying only a small fraction of that price.
Leasing Your Fleet Through AUTO ONE Group
Not only do we offer vehicles, but AUTO ONE offers equipment leasing as well. Peruse our nationwide inventory, and if nothing pops out at you, let us know – we’re more than happy to hunt down a vehicle or piece of equipment if it’s not in stock.
We serve a number of different industries, from construction, telecommunications, hospitality… you name it. And we’d be thrilled to serve your business as well. If you’re convinced that leasing is the way to go (if you weren’t, we hope this article has persuaded you!) then contact us anytime to get the ball rolling.