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Why Leasing Your Company Vehicles Makes Proper Business Sense In Australia.

If you are an Australian business owner then if you are reading this article, you are contemplating whether or not to buy your company vehicles outright or to lease them. If you’re thinking of buying multiple vehicles then that’s an incredible amount of money to pay in full because the money that you spend could be ploughed back into your business to allow it to grow and to be more profitable. It would make a lot more sense to find a way where you could get the vehicles that you want and need but only have to pay a certain amount of money over time.

When you purchase a car or truck and you drive it out of the showroom then it loses its value almost immediately and if you have taken out a loan to pay for this vehicle then the value has now dropped below the amount of the loan that you now have to pay. This makes absolutely no sense financially and so it’s better to look into Fleet Management with a third-party provider that can provide you with all of the vehicles that you need all at once. There are many reasons why you should lease your company vehicles here in Australia and the following are just some of those.

  • For the tax benefits – The Australian government in their wisdom, have allowed deductions for companies that lease their vehicles and so this is an opportunity that you can’t afford to ignore. There will be some rules in place to make sure that you qualify but these are easy to meet. The leasing payments that you make to your provider can be a used as a deduction but go the other way and you decide to take out a loan to buy your vehicles then only the interest on the loan itself can be used as a deduction.
  • For your business image – In order to be able to drive business your way, you need to look successful because first impressions are incredibly important. If your lease vehicle is getting somewhat old then it is easy and straightforward to you to choose a new model. This will look very good for your business name and brand but if you buy a car then it’s not so easy to upgrade that same vehicle year-on-year.
  • It’s easy & straightforward – All of the red tape that is normally associated with borrowing money from a lending institution is removed when you are dealing with a fleet management company that can offer you leasing company vehicles. It is quite normal to get approval within 24 hours of your first application depending on who you apply with. There is very little paper work to be completed and your new vehicles can be at the front of your building in a very short space of time.

As you can appreciate, it makes a lot more business sense leasing the company vehicles required than it does taking out a loan to buy them or to buy them outright. 

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