Business Vehicle Buy or Lease a Car?

Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 9 How to Finance Your Business

Question:
"For business purposes should I buy a car or lease a car?"

Ken Blake
Certified Public Accountant (C.P.A.)

Topics covered in this video:
Business vehicle, buying a car, leasing, financing

Transcript:
That's one of the 64 dollar questions. That's something that can't be determined with a firm yes or no without looking at a couple of things. The main thing to keep in mind is how many miles a year will you put on the vehicle and how often do you want to change vehicles. Folks who put a lot of miles on a vehicle and tend to run it till it drops are better off buying the car. On the other hand, if you like to have a new car every two or three years and don't put on too many miles (say between 10 and 12 thousand miles a year) then a lease probably makes good sense. Even better, if you can lease a car that is a couple of years old you can get one that is coming off a lease that may have only 20 or 24 thousand miles and is in nearly new condition. These make the best deals.

Remember with a lease it's really a finance cost that you're looking at. So the lower the up-front costs the better off you are. But to summarize lease verses buy, it depends on your usage and it depends on how long you want to keep the car.

Category:

Education

Tags:

• Start
• starting
• business
• loan
• unsecured
• secured
• collateral
• investment
• lender
• bank
• funding
• financing
• write
• plan
• vehicle
• buy
• lease
• car
• truck

[lemkelegion]

well how old is the car if its old theres likeley to be problems with the car working so i would lease a car

[flash348]

Thanks