Vehicle Leasing: The Business Owner’s Guide
Vehicle leasing is a cost-effective way for business owners to get their hands on a brand new car, truck or van. What’s more, you won’t have to worry about depreciation and big upfront costs.
And do you need to lease a vehicle for your business but still need to keep to a tight budget? It can be done!
Whether you’re planning on leasing from here or you’re just browsing for ideas, check out this helpful guide to ensure you know how best to spend your hard-earned cash.
Choose a Vehicle That Meets Your Needs
Of course that brand new vanilla white van with leather interior and Bluetooth phone pairing would be really nice to have. But before you sign on the dotted line, ask yourself these questions:
- Do I really need it?
- Will it cost more than the vehicle that actually meets my needs?
Sales people can be pushy. But you don’t have to fall for their sales pitch if you don’t have the budget for what they’re suggesting. Do your homework beforehand. Understand what your business needs, and go online to select your vehicle before you get to the lot.
How Much Mileage Do You Need?
Mileage is tricky. Many of us drastically underestimate just how far we drive. Therefore, it’s important that you overestimate how many miles you’ll need when setting up your leasing policy. If you go over your agreed-upon mileage amount you could be hit with some unexpected fees. And that could be really painful. Make a plan and know in advance what you think you will use. Then overestimate that number. That way, you’ll get closer to the number of miles you will really use.
Keep the Vehicle in Good Condition
It’s important that you maintain your leased vehicle to a high standard. In this way, you’ll ensure that the dealership won’t charge you for any maintenance when you return the vehicle. Have it serviced every year, and keep it clean inside and out. Furthermore, do not modify the car and try to avoid scratching or denting it. If despite your best efforts, the vehicle gets damaged, have it fixed professionally before you return it.
Ensure Your Maintenance Costs Are Covered
One of the tricky aspects of vehicle leasing is making sure you get good coverage for necessary maintenance. Warranties and maintenance coverage are especially important when you’re leasing a business vehicle. You don’t want anything to go wrong with the vehicle a couple of months into the lease and have to foot the bill. Ask your leasing company what maintenance they include and make sure you get what you need in terms of coverage.
What If You Have Bad Credit?
Bad credit happens. Especially when you’re starting up a business, things sometimes go wrong and you can come up short. But if you have bad credit and you need a vehicle to run your business, what can you do? Well, you can look into bad credit car leasing. This option can give you a way to lease the vehicles you need to keep your business running, regardless of the state of your credit.
Photo credit: Abe Novy on Flickr
The Bottom Line
For business owners, vehicle leasing can definitely be a more cost-effective way to go. It allows you to step into a higher-end vehicle for less money. But be sure you know what you need ahead of time and have a plan. What’s more, know your budget and stick to it.
Then, as long as you take good care of the vehicle during the period of the lease and service it regularly—plus make sure you have coverage for adequate maintenance and mileage—you can expect to have a successful vehicle leasing experience.