Brought to you by Orangewheels:
Leasing a hybrid or electric car for your business is often a better investment than buying a company car. Today, there is a wider variety of hybrid and electric cars available than ever and a growing number of public charging stations make it easy to charge your car when you need to.
To help you decide if leasing an electric or hybrid car is right for your business, following are five of the key benefits that come with leasing rather than buying a company car.
1. Tax Benefits
The tax benefits of leasing a car for your business rather than buying one can be very attractive to business owners. Typically, your monthly lease payments are tax deductible as a business expense.
When you buy a car for company use, the interest on the vehicle loan is usually tax deductible, but your monthly loan payments won’t be.
Also, you may qualify for an electric vehicle tax credit when you buy an electric or hybrid car for your business, but keep in mind, if you lease the car, many dealers will pass that credit to you in the form of lower monthly payments. Be sure to check with your dealer to see if they’ll pass the tax credit to you, which can make leasing a better option.
2. Lower Upfront Costs
Do you have the cash on hand to pay the down payment and upfront costs associated with purchasing a car? If not, leasing is a great alternative.
In fact, you may even be able to get a better lease term and rate when the lease on your current car is up if you agree to lease another car with the same dealer. That means you’ll save money now and in the future.
3. Lower Monthly Costs
When you lease a new car, your monthly payments will be lower than the monthly payments you’d be required to pay if you purchased the same car (assuming you don’t have a large amount of cash to pay for the down payment when purchasing).
Furthermore, your ongoing maintenance costs should be lower since regular maintenance is often included in your lease. This isn’t always the case when you buy a car.
4. Brand Image
By leasing an electric or hybrid car, you’re also investing in your brand image. When you or your employees drive electric or hybrid cars, it immediately communicates that your business is eco-conscious.
Electric or hybrid cars have lower CO2 emissions, don’t rely as heavily on gas, and incur no congestion charges, such as London congestion charges. If you’re located in the UK and are considering leasing a business vehicle, then get started by visiting a website for a reputable company like Orangewheels Leasing.
If your business promotes corporate and social responsibility as a top priority, then leasing an electric or hybrid car for your business shows you don’t just talk about helping the environment and being socially conscious but rather, you do something about it.
5. Brand Perception
When you drive a new electric or hybrid car, your business and brand are instantly perceived as high quality and powerful in comparison to an older vehicle. Depending on your industry or line of work, this brand perception could be extremely important.
How do you want your target audience to perceive your brand? If phrases like cutting edge, environmentally conscious, high quality, powerful, reliable, or exclusive come to mind, then leasing a hybrid or electric car for your business will allow you to communicate that message simply by choosing a specific type of vehicle.
There are options for brands that want to communicate anything from, “We’re the approachable brand,” to, “We’re the exclusive brand,” and everything in between.
Is Leasing Right for Your Business?
Leasing a hybrid or electric car for business could be a great choice for you. There are many benefits, but be sure to talk to your accountant and tax advisor before making a decision to ensure you choose the best option for you and your business.