Lease: An Alternative to Purchasing

When making the decision whether to buy or lease vehicles for your company’s fleet, there are many factors to consider. There are short and long-term benefits, and we will walk you through some of the main differences between the two options.

Financial Benefits

Basically, leasing your vehicle means that you only pay for the portion of the vehicle that actually depreciates, where as buying a vehicle means that you pay for the entire cost of the vehicle up front. Purchasing can provide your business with valuable assets. However, unless your company is cash rich and can afford to buy your vehicles without financing them, you will pay a higher monthly payment than you would if you were to lease. By leasing, you are able to spend less each month therefore, your capital can be utilized your cash savings elsewhere to grow your business.

There are different types of leases. You can acquire certain financial benefits for your company, depending on which lease you select. With the operating (closed-end net) lease, you can obtain tax benefits by deducting 100% of your lease payments from your income statement. Or, on an open-end finance lease you can claim depreciation and deduct the interest expense from your lease payments under a capital lease.

Incentives, Discounts and Rebates

Occasionally you can strike a deal with a dealer. However, when partnering with Brambilla’s as your fleet management partner, you can be assured that you will always receive the best fleet allowances, rebates and incentives available due to relationships of over twenty-five years built with the auto manufacturers, BLS’s buying power and leverage is based on our volume, and other negotiated services that saves your company both time and money.

Company Image

When owning your fleet vehicles, you run the risk of the vehicles looking poor if you are unable to maintain them. When leasing your fleet, you are able to keep your employees in the latest model vehicles. Additionally, your drivers benefit from the newest technologies-including better navigation, communication and safety features.