Small business owners have a lot of options when it comes to acquiring a vehicle for company use. They can buy new models or get a plan on cars for lease in Abu Dhabi. But which of the two is the right choice for you?
It truly depends on the best options. In order to make the best decision possible, there are questions you should ask yourself and your business partners. The following should help you weigh the pros and cons of whether to buy your own or go for an economy car rental.
Both forms of payment come with initial costs. In buying a car, you’ll need cash for down payment. If you don’t have the means for a lump sum payment, but need the vehicle immediately, leasing might be your only option. Leasing companies usually require security deposits, but not as large.
You need to anticipate the number of kilometers you have to put on the vehicle. Most leases come with a mileage limit, typically around 20,000 kilometers per year. This means that upon returning the vehicle, the distance covered should be equal to or under that amount. Going over will incur penalties. If you think the vehicle will cover excessive mileage per month, it’s best if you own the vehicle so you won’t have to pay any penalties.
Some leasing companies may have a say in how the vehicle should be used. They may also set limitations in the areas you are allowed to drive. So before signing up for a lease, make sure to verify if you can use the vehicle the way you are planning to. For instance, some companies don’t allow their cars to be used for jobs like Uber. In this case, you can be more flexible if you own the vehicle.
If you own the vehicle, you need to handle regular maintenance or repairs, especially if it’s going to run for hundreds of miles each month. Otherwise, it will depreciate faster than you think. If you want less responsibility, leasing will suit you better. Most leasing companies offer regular maintenance checks, essential repairs, and roadside assistance, as part of the deal.
Advantages of Purchasing a Car
There are benefits to buying your own car. If you own the vehicle, you don’t have to worry about exceeding mileage limitations. You are also allowed to add whatever custom job you want. Lastly, you can sell it after some time and recover a part of your original investment.
Just keep in mind that with ownership, you need to have the means to pay monthly fees (which are usually higher than leasing). You also have to expect maintenance and repair costs and take on the responsibility of selling or trading it if needed.
Advantages of Car Lease Deals
Most people are familiar with the process of purchasing a car outright. Leasing can be an unfamiliar territory. With a car lease, you can protect your company’s liquidity as you are not required to pay down payment. Affordable monthly payments are tax-deductible as a business expense. Regular maintenance is also covered as part of the lease package.
Leasing lets you drive without thinking about depreciation, because you can return the vehicle at the end of the contract. You don’t have to worry about selling or disposing the car since the leasing company will do that for you.
If you’re interested in leasing vehicles for your business, talk to the experts at EuroStar Car Hire UAE. We offer flexible structure and payment terms from one up to five years. You have the freedom to choose any type, any make, or any model. Feel free to contact us today!