Why should I lease instead of buy a vehicle?
The advantages of leasing over purchasing are:
- tax advantages ( get advice from your accountant first);
- you free up capital that would have been used for the purchase of a vehicle for other business uses;
- you have a set monthly repayment so you know your vehicle costs and
- at the end of the lease you simply hand the vehicle back and avoid the risk of a loss on resale
What is the residual?
The residual value is what the vehicle will be worth at the end of the lease. This value is set at the start of the lease.
Can I have a non maintained lease?
Can I lease 4 wheeler motorcycles and business equipment?
So long as the bike or equipment are used in the business, they can be leased.
What is the difference between an operating and a financial lease?
The expected residual value is set (what the vehicle will be worth at the end of the lease). At the end of a lease the vehicle is usually sold, and this may be for more or less than the residual value. With a finance lease, if the sale price is less than the residual value, the lessee pays the difference to the lease company. If the sale price is more than the residual value, the lease company refunds the difference. Under an operating lease, the lease company takes any profit or loss on the sale and the lessee is not involved at all.
