When you need vehicles for your Houston business, there are many different options. For instance, Houston commercial vehicle leasing or purchasing vehicles with business financing. Both are viable options, but it’s important to choose the right solution for your business. In this article, we’ll discuss the differences and some of the pros and cons of each to help you decide.
Is Houston Commercial Vehicle Leasing or Purchasing with Financing the Right Option for Your Business?
There are a few key differences to financing a business vehicle and Houston commercial vehicle leasing. With fleet leasing options, you lease the vehicle for a certain period of time to use for your business. Depending on the type of lease, you might return the vehicle or you might buy the vehicle after the lease ends.
By contrast, if you choose to finance a commercial vehicle purchase, then you own the car and it serves as collateral for the loan you take out on it. Business auto loans work similarly to consumer auto loans, except instead of having your personal name on the loan, it would be your company’s name.
Fleet Leasing Offers Many Perks
With Houston commercial vehicle leasing, there are several advantages for your business. One is that there’s no down payment, so costs are usually much lower up front for business vehicle leasing compared to financing a commercial vehicle purchase. The monthly payments are also often lower than business auto loan payments.
When you lease your fleet vehicles, usually you can deduct mileage as well as part of your lease payments, as they are part of your normal operating expenses.
Also, with leasing, you get to take advantage of the useful lifespan of the vehicle. This allows you to upgrade as needed to newer options. It also gives you flexibility if you need to downsize your fleet.
In addition, our team also offers capital leases, which are like the best of both worlds between fleet leasing and purchasing fleet vehicles. With these leases, you lease the vehicle and usually have the option to purchase the vehicle at a discounted price or you automatically own the vehicle after the lease term ends.
Some of the frequently cited disadvantages of fleet leasing include mileage restrictions, wear and tear clauses, as well as being unable to customize the vehicles. However, if you choose a partner like Glesby Marks, you don’t have to deal with any of these issues. We offer no mileage limits, no wear and tear penalties, and also can help you customize vehicles to your exact needs.
Important Things to Know About Purchasing Cars with Business Auto Loans
One big reason that many business owners choose to purchase vehicles, even if it means financing them, is so they can claim depreciation on their taxes. Depreciation deductions can be pretty big and you’re usually not able to claim this with leased vehicles.
Also, vehicles purchased with financing do become real assets for your company, which is another major benefit.
However, you also need to think about a few things to determine if financing commercial vehicle purchase is really the right choice over leasing. For instance, down payments for business auto loans can seriously impact cash flow. Also, between high rates and continued material shortages, purchasing cars right now is expensive. Therefore, Houston commercial vehicle leasing may be the better option for now, depending on your company’s situation.
Additionally, once you reach the end of the useful lifespan of your vehicles, your business will typically need to remarket them to optimize total cost of ownership. If you’re not prepared for remarketing, it can take quite a lot of time and focus away from other things.
Get Ideal Houston Commercial Vehicle Leasing & Maintenance Solutions from Glesby Marks
Our team at Glesby Marks is here to help you reach your goals through comprehensive fleet services. Whether you need to lease new vehicles or need Houston fleet management tools, we have what you need. Our experts work with you to completely customize our services and tailor them to your needs. We operate nationally with locations in Houston, Denver, Seattle, and Portland. Call us now at (800) 482-9498 to discuss your fleet needs with our experts.