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Buying vs leasing

By Bidvest Bank

Bidvest Bank offers guidance on the benefits of buying vs leasing a vehicle

The question of buying vs leasing a vehicle is a critical one for businesses that rely on a fleet of vehicles to deliver their products or complete their services. Buying multiple vehicles can become an expensive burden for a business and put strain on cash flows. Leasing a vehicle is a good way to gain a fleet of vehicles and spread the cash outflow over the useful life of the asset.

Before making up your mind about buying vs leasing a vehicle, it’s integral to understand what leasing a car entails. In a vehicle lease agreement the lessee will agree to pay a monthly amount for the use of a vehicle. The lessee and the lessor will agree on a payment schedule that is determined by the value of the vehicle and the estimated kilometers that will be travelled.

The benefits of buying vs leasing a car vary from case to case, as it depends on many different factors (such as the time period of the lease and the number of vehicles being leased). Generally speaking, the cost of leasing a car is less than the cost of buying the car once off. Browse the available Bidvest Bank information on finance and leasing options for more information.

Buying vs leasing a car for your enterprise

When considering whether to lease or buy a vehicle, there are a number of factors that come into play. One definitive element is that leasing a vehicle will be more cost effective than receiving a loan to buy a vehicle. Below are some Bidvest Bank tips on whether buying vs leasing a vehicle is right for you:

  • Does your business have the time and expertise to ensure that you source and procure the right vehicle at the right price for the task?

Do you have the expertise to ensure that you are able to re-sell the vehicle at the end of the contract for the best possible price? Do you have the experience necessary to ensure that you are able to adequately manage the repair and maintenance costs of the vehicle during the life of the contact?
If the answer to the above questions is yes, then buying is the best option for your business. If the answer to the above questions is no, then leasing is the best option for your business. Additionally leasing is the better option if your business prefers not to have to pay a deposit or you wish to use the vehicle for a period less than 5 years, or if you wish to reduce your cash out-flow.

Leasing a car from Bidvest Bank: cost-effective total fleet solutions available

When considering buying vs leasing a car, Bidvest Bank has a range of solutions for individual vehicles, as well as a total fleet solution for enterprises requiring multiple vehicles. Contact Bidvest Bank for more information on our leasing a car options.