Are most of your business decisions based on how much money you can save? If so, you probably lease a car for your business simply because it’s affordable — whether you like it or not. Buying a new car is expensive and a long-term business investment. It’s easier to get the cheapest option, but that means settling for something you don’t really want.
What is the Best Car to Lease?
If that rings a bell, here are 5 reasons to shell out some extra cash and lease the business vehicle you really want to drive:
1. You’ll Feel Better about Yourself
Are you stuck driving a van but wish you had a sedan? Maybe you’re driving an SUV and picture yourself in a sports car. Or perhaps you’re driving an old pickup truck that’s too small to accommodate all of your work tools and equipment.
If you’re not living paycheck-to-paycheck and you’ve got extra cash after paying bills and padding your savings account, why aren’t you driving the car you really want to drive?
There is a relationship between your image and the car you drive. If your car doesn’t match your image, you’re going to feel mismatched when you drive. Of course, image isn’t everything, but say you’re trying to get a promotion. Driving a nice car will influence you to act and speak more professionally, which could influence your chances at getting promoted.
2. Hoarding Money is Miserly
Most people wouldn’t consider themselves money hoarders, but sometimes it’s hard to make a distinction between saving and hoarding. Tossing money into your savings account on a regular basis is important, but if you never spend it on things you want to enjoy, what’s the point?
You don’t need to empty your bank account to get a new car – you can find a used car at a local dealership or lease a new car. For example, you can lease a Volvo XC60 Momentum for less than $400 per month and an Audi A4 Sedan for less than $500 per month. The only difference is, to lease a luxury car like an Audi, you’ll need to plop down a bigger chunk of cash.
If you have the money and you want to drive the car, does it really matter what it will cost? You could probably eliminate several unnecessary monthly subscription services to cover part of the cost.
3. The Commitment is Shorter than Buying
Buying a car means committing to years of payments unless you’re lucky enough to find someone to take over your payments. Leasing a car requires a shorter commitment, usually 36-48 months. A benefit to having a short lease is you can renew that lease or lease a different model from the dealership. Theoretically, you could drive a brand-new car every three years.
Some dealerships offer the option to buy the car at the end of the lease term.
4. Tax Advantages for your Business
Do you use your car for business? If so, leasing a car will give you more tax breaks than if you own your car. For instance, you can deduct your monthly financing costs. The tradeoff is you can’t deduct standard mileage at the same time – it’s one or the other.
For your leased car to qualify for tax breaks, you need to prove you drive it 50% of the time for business. Additionally, only the business portion of your lease fees can be deducted.
5. Do it Because You Want To
How many opportunities in life do you let pass by? How many more used cars are you going to settle for before you finally start driving the car that has been calling to you for years?
You don’t need to save every penny you earn for a rainy day. On a rainy day, you should be driving around in your dream car enjoying yourself.
If you’re hesitant to spend money on a car, you probably grew up being told it was a waste of money to buy a new car, or that money was better spent on other things. Whatever you were raised to believe, you don’t have to believe it as an adult.
If you can’t afford to switch up your car, that’s a different story. However, if you’ve got the financial means to get yourself an upgrade, why not?