LEASE VS. BUY

Should you lease or purchase your vehicles and business equipment? This is a common question and there are several factors (financial and non-financial) to consider when making a decision:

Purchase:

Leasing:

1. Entire cost of the vehicle is paid or financed up front 1. No down payment is required, preserving company capital and credit lines
2. Sales tax is collected on the full purchase price 2. Sales tax is minimized and based on monthly lease payment
3. Loss of volume purchasing power resulting in higher acquisition cost 3. Lower acquisition cost through commercial incentives and rebates
4. Significant time wasted in shopping and negotiating price 4. Single source for any vehicle make or model with pre-established pricing
5. Personnel required for ongoing administrative operations 5. Administrative tasks performed by experienced lease professionals
6. Remarketing is time consuming and costly due to lack of market expertise 6. Hassle free remarketing with benchmarked sales results maximizing return
7. Vehicles listed on balance sheet and depreciated on income statement 7. Operating lease payments are expensed thus reducing tax liability

Most companies choose to lease their fleet of vehicles because of the financial and administrative advantages over purchasing. Southgate Lease Services offers an extensive range of programs and services suitable for businesses interested in improving cash flow and meeting their transportation needs. Contact us today to find out how we can improve and streamline your fleet operations.