It’s the age-old question you as a business owner confront when acquiring a new vehicle for your business: Buy or lease?

The answer, of course, is that neither method is inherently superior to the other.

The key to making the right decision is to understand the advantages and disadvantages of each option and how they affect your own situation. Here are the 10 factors you need to consider.

Lease vs. Buy: The 10 Factors to Weigh

Like most of us, you understand the general difference between buying a vehicle and leasing one.

But to make a sound business decision, you need to consider the subtle tax and financial characteristics associated with each option—the way a tax accountant would.

Factor 1: What You Get for Your Money

Buy. When you buy a vehicle, you assume full ownership. So you’re free to use it any way you see fit and drive it as far as you want.

Lease. When you lease, you pay only the portion of the vehicle’s expected decline in value over the life of the lease—typically three to five years.

Weighing the options. Conventional wisdom has it that buying is better for you if you want to own ... Log in to view full article.