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Article Date:
February 2013

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Buy or Lease a Business Vehicle: Which Costs Less?

If you’re trying to decide between leasing and buying your next business vehicle, one question is probably foremost in your mind:


Which option costs less?


Unfortunately, comparing the costs of leasing and buying isn’t as simple as it looks. To do it right, you must consider not just out-of-pocket costs but also



cash available,


the tax benefits of each option, and


the time value of money.


The Difference between Lease and Buy. . .


When you buy, you own the vehicle free and clear after you repay the loan. So you get the trade-in or sale value of the vehicle when you decide to get rid of it.


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