WHY LEASE ?

Avoid having to pay the full cost of the asset up front, so you don't use up your working capital or
have to borrow.

Only pay for the asset over the fixed period of time that it is needed by you.

Easier to forecast cashflow as rates on monthly rental costs are usually fixed.

The cost can be easily planned to coincide with revenue coming into the business.

Reduce your tax bill by deducting the full cost of lease rentals from taxable income.

For companies that either do not pay tax or pay at the small company rate, the 100% tax
allowances of lease rental are normally more beneficial than capital allowances for outright
purchase options.

No need to worry about an overdraft or other loan being withdrawn at short notice due to
changes in bank policy or personnel.

Maintenance and other asset management service items can be written into operating lease or
contract hire contracts.

The risk is carried by the leasing company.

The leasing company can usually obtain better discounts due to their.

DISADVANTAGES OF BUYING YOUR
VEHICLE !

You pay the full cost of the asset up front out of working capital, or debt finance, which adds to
the cost.

A small company will have limited bargaining power and knowledge with regards to the potential
discounts available.

A small business is gambling that it will not need the capital for the medium and long-term.

The cost cannot be spread to coincide with money coming in to the business.

You are responsible for the maintenance and servicing of the asset.

Banks can withdraw overdrafts and loans at short notice and demand early repayment.

You are unable to take advantage of the tax benefits of deducting the cost of rental from your
taxable income.

It may take longer to source and administer the purchase.

All the risk is taken by you.