Leasing a vehicle for your business can be a strategic way to manage expenses while keeping your fleet up to date. Whether you need a single car for work-related travel or multiple vehicles for company operations, leasing can offer financial flexibility and tax advantages. At Birchwood, we make business vehicle leasing simple and tailored to your company’s needs. Here’s everything you need to know about leasing a business vehicle, including the pros and cons and how Birchwood can help!
The Benefits of Leasing a Business Vehicle
Lower Monthly Payments
Leasing typically offers lower monthly payments compared to financing a vehicle purchase. This allows your business to allocate funds to other essential expenses while still driving a reliable, professional vehicle.
Tax Advantages
Leased vehicles used for business purposes may be eligible for tax deductions. Depending on your company’s structure and usage, you could deduct lease payments and operating costs. Be sure to check with an accountant to see how this applies to your business. Learn more on the Government of Canada website.
Access to the Latest Models
A lease allows you to upgrade to a newer model every few years. This ensures your business vehicles are equipped with the latest safety, fuel efficiency, and technology features, keeping your team productive and professional on the road.
Minimal Maintenance Worries
Most business vehicle leases come with a warranty that covers major repairs. This reduces unexpected maintenance costs and ensures your fleet remains in top condition without breaking your budget.
Potential Drawbacks of Leasing a Business Vehicle
Mileage Restrictions
Leases come with mileage limits and exceeding them can result in extra fees. If your business requires extensive travel, it’s important to estimate mileage accurately and negotiate a higher mileage lease if needed.
No Ownership Equity
Unlike purchasing a vehicle, leasing doesn’t build equity. Once your lease term ends, you don’t own the vehicle. However, this isn’t a concern for businesses that prefer rotating vehicles every few years.
Possible Wear and Tear Fees
Leased vehicles must be returned in good condition. Excessive wear and tear beyond normal use may result in extra charges. Birchwood can help you understand acceptable wear levels before you return your leased business vehicle!
How to Lease a Business Vehicle at Birchwood
At Birchwood, we make the process of leasing a business vehicle smooth and efficient. Here’s how you can get started:
Assess Your Needs: Determine how many vehicles you need, your budget, and any specific features required for your business operations.
Choose the Right Vehicle: Our team will help you select the best make and model that suits your business needs, whether it’s a fuel-efficient sedan or a durable work truck.
Review Lease Terms: We’ll go over the lease agreement, mileage limits, and any tax advantages that apply to your situation.
Submit Documentation: Businesses may need to provide financial information, proof of insurance, and company details to finalize the lease.
Drive with Confidence: Once approved, you can take delivery of your new business vehicle and enjoy the benefits of a cost-effective lease.
Leasing a business vehicle with Birchwood is a hassle-free way to keep your company running smoothly while managing costs effectively. If you’re interested in exploring your leasing options, visit Birchwood today, and we’ll guide you through the process!
