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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