Question

What benefits do you see in leasing a vehicle?

What are the negatives to leasing?

Answer 1

Following are the benefits of leasing a vehicle

1) No Capital Expenditure : The main benefit of leasing is there is no big capital outlay . When you lease a vehicle there is no capital expenditure.

2) Fixed Expenses : In leasing there will be fixed expenses which is very helpful in budgeting and management information system

3) Tax Benefits : You can claim the leasing expenses in the profit & loss a/c and can claim the expenses for your Income tax also

Following are the dis advantages to leasing

1) Interest Component : There is always a interest component involved in leasing charges which in long term is a dis advantage.

2) No Ownership : In Leasing the ownership is with the vehicle company and not with you , It is a big disadvantage.

3) Maintenance : Although the owner is not you but the maintenance expenses should be borne by you . This is a big dis advantage.