Financing

Lease or buy? That is a question both small and large business owners and fleet managers will ask many times over during their careers. There is no easy answer and, often, second guessing after making the decision.

Purchasing your vehicle presents many advantages over leasing, not the least of which is the accelerated depreciation option made available by IRS Section 179 Exemption. Additionally, the buyer need not worry about mileage restrictions, excess wear and tear charges, and higher insurance limit requirements. With recent upgrades to financing instruments, buyers can now take advantage of longer terms, industry specific payment schedules (monthly, quarterly, semi-annually, and annually), lower interest rates, and no set-in stone down payment demands.

Another difference between leasing and financing is how your bookkeeper records the vehicle. Generally, a work truck purchase will appear on your P&L Statement (Balance Sheet). If you want to expense your new work truck, an operating lease may be right for you. Please, contact your accountant to discuss what is right for you and your company.