A car is an everyday necessity for many. It’s how you get to the office every day. It’s how you get your kids to school or to their activities. It’s how you transport your family.
It’s something that many cannot live without. So, that makes it a monthly expense that is almost unavoidable. Sure, some many buy a car outright and not have a monthly car payment, but is that the best option especially for those that are self employed business owners?
There are two options when it comes to car ownership — buying or leasing. But, which one is better? Many people see that car payments appear to be lower on a purchase when compared to a lease, but is the savings really accurate?
For those that are self employed, leasing will often offer more benefits. As always, you want to consult with your tax accountant, but generally speaking, leasing is the smartest, financially speaking, if you are self employed.
So, whether you own a large retail operation with hundreds of employees, or have an online review website like the one found here, there are multiple benefits of leasing a car over buying one outright.
It Eliminates Maintenance and Upkeep Costs
This is a big one. When you lease, it’s usually for a term anywhere from 24 to 36 months. Under that time, you have a fully warranty and most manufactures also throw in all maintenance like oil changes, tire rotations, etc. for free.
This means that you have no other financial costs, aside from the lease payment itself and gas. When you don’t have to worry about unexpected repair costs and service costs, it allows you to budget more accurately.
Over the course of a year, this could save you thousands of dollars. And, if you roll over into a new lease every time this continues the trend and you never have that expense again. It’s a nice feeling knowing that everything is handled.
Provides Tax Write-Off Benefits
Now, one of the most financially attractive parts about leasing a car is that you can write off 100% of the lease as a business expense. When you buy a car outright you do not have this same luxury.
As the owner of National Pool Fences explains, “Leasing provides many tax benefits. I suggest that you sit down with your accountant and discuss your particular situation, as you might find that switching to a lease can save you a considerable amount of money each year.”
When you combine the tax advantages as well as the fact that you eliminate all the headaches that come with car ownership, you will see that it’s a better option. All you have to do is keep it filled with gas — the rest is already taken care of. Eliminating that stress is priceless.
You Get Frequent Car Upgrades
If your line of work involves a lot of road trips and meetings, it’s nice to always be in the newest car model. It provides for a more comfortable ride and being in a new car all the time is a confidence booster for sure. It simply feels good to have the latest and greatest.
You will always have the latest and greatest car audio features, and things like the most advanced navigation and backup camera technology. If you have to entertain clients and they ride in your car, this is key.
Picking up a client in a new car is going to make a better impression than an older car that looks clapped out. First impressions in business mean everything, and little things like what you drive and what you wear do contribute to those first impressions.