Should you buy or lease your business vehicle?

Thinking about getting a new vehicle for your business? Then you have to make a tough decision…

Should you buy or should you lease?

Unfortunately, deciding which option saves you the most money isn’t always easy. Sure, you’ve got to consider out-of-pocket costs, but you also have to think about how much cash you have available, the tax benefits each approach provides, and the “time value” of your money.

So… before you head off to the dealer, check book in hand, be sure to read my new article titled Tax Tips: Buy or Lease a Business Vehicle: Which Costs Less?

Three ways our fact-filled article can help you:

1. You’ll learn the major differences between buying and leasing. When you buy, you own the vehicle free and clear after you repay the loan. When you lease, the dealer or leasing company owns the vehicle and you pay for its use over the lease term. But that’s just for starters. You’ll get the whole story when you read the full article.
2. We’ll tell you the tax implications of both buying and leasing. The key tax difference involves computing tax deductions for depreciation. This can be a tricky business but we’ll make everything clear when you read the full article.
3. We’ll explain the concept of “present value.” The after-tax adjusted present-value method takes into account the money you pay out and the money you collect. Then it values that sum in today’s dollars so you can make an informed decision about how to save the most money. This is an important concept that we’ll explain in easy-to-understand language when you read the full article.