Leasing vs owning a vehicle is a big question many ponder when looking to purchase a car. Today we are going to focus on the business aspect. No matter what the size of your business, a core issue for fleet managers is whether to buy or lease vehicles. Issues to consider include acquisition cost, total cost of ownership, tax impact, insurance, balance sheet impact, mileage, driving conditions, brand image and overall business strategy.
Generally speaking, very large fleets have enough leverage and internal resources to make the decision of owning versus leasing a close call. On the other hand, small fleets often find the costs of ownership — particularly when it comes to capital outlays and vehicle maintenance — to be prohibitively high.
In between the clear-cut cases are the majority of companies where determining whether to lease or buy is challenging. This is where the infographic below comes in, Leasing Versus Owning in Fleet Management. This visually engaging overview will help you zero-in on the key issues to consider.
Finding balanced information of the trade offs between buying and leasing is hard to find, which is another reason why the infographic is worth a look. While leasing makes sense in the majority of situations, it is not always right. Just as it would be a mistake to buy vehicles without considering the advantages of leasing, it would also be risky to lease simply because everyone else is doing it. As always, an examination of the pros and cons leads to the best decision.
Courtesy of Union Leasing
Which category does your business fit into?
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