How To Lease A Car For Your Small Business
Leasing a car for your small business is one of the most cost-effective ways to drive a newer and more stylish vehicle. Best of all, it has never been easier. You can lease one or a fleet of vehicles for your small business with as little effort as possible - and no hassle - through Carlease.com.
We've removed the hurdles and simplified the process of small business leasing. Getting started is simple — use the following information as a guide to choosing the best lease for your small business.
Determine Your Business Needs & Goals
Image c/o Canva.com
Do you own a small flower shop and are looking to start offering deliveries throughout your local area? Or are you a Lyft or Uber driver considering leasing a sedan for the rideshare service? Whatever the case may be, the type of business you operate should be one of the biggest factors dictating the type of vehicle(s) you choose to lease.
Prior to leasing a vehicle for your small business, it's imperative you think through the best type of vehicles. Fortunately, you can browse all styles, makes and models of vehicles at Carlease.com from the comfort of your business on one convenient site. You can browse:
Most importantly, the small business leasing experts at Carlease.com can provide guidance and assistance by asking you the right questions and helping you find the best mix of vehicles to meet your strategic initiatives.
Which Manufacturer Should You Choose?
Once you have decided on the types of vehicles your business needs, the next step is to choose the vehicle manufacturer. If you’re like most small business owners, you don’t have time to go from dealership to dealership comparing different brands. Fortunately, you don’t have to!
At Carlease.com, you can easily browse and compare vehicles from all manufacturers. This means you can compare different vehicle manufacturers side-by-side and make the best decision for your business.
Even if you don't know where to start, the experts at Carlease.com can provide unbiased advice. Since we're not tied to any manufacturer, our one and only focus is to help you make the best decision for your business.
You can even mix and match different makes and models to find the perfect fleet mix. For instance, you can choose a Ram 3500 truck, a Toyota Corolla, and a Ford Transit Van — if that's what your business needs.
We’ll help you consider all of your options and make the best decision for your business. Your Carlease.com small business leasing expert will provide guidance and ensure you keep the following critical elements in mind:
- Fuel efficiency
- Maintenance costs
- Cargo space
- Towing capacity
- Longevity of manufacturer's warranty
For a more comprehensive overview of the entire small business leasing process, make sure to check out The Ultimate Guide to Business Leasing.
Important Business Lease Terms
Once you have decided on the type of vehicle and the manufacturer, there are several business leasing terms you’re likely to hear. The most common small business leasing terms include:
- Capitalized cost is the lease price or the amount you'll pay to lease the vehicle.
- Cap cost reductions are down payments, dealer incentives, factory rebates, or trade-in vehicles that will reduce the overall capitalized cost.
- Residual value is the vehicle's value at the end of the lease.
Key Business Lease Contract Factors to Consider
Every business is different, and there are no one-size-fits-all solutions when it comes to leasing. As a matter of fact, business leases are as diverse as the customers you serve. However, make sure you pay special attention to the following business lease contract considerations.
An example of how short-term leases can have higher monthly payments compared to long-term leases.
The lease term explains how long your business will keep the vehicle. Most lease terms are available for 24, 48, and 48 months. As a general rule of thumb, shorter leases are more expensive than long-term leases.
This is due to the fact the vehicle's residual value decreases at a faster rate during the first 24 months. You should also be aware of the bumper-to-bumper warranty on the vehicle and make sure the lease doesn't extend past this date.
Estimating Business Mileage
Be sure to account for natural wear-and-tear if you plan to drive this car a lot.
Prior to entering the lease, make sure you have a solid understanding of the number of allotted miles vs how many miles you expect to accumulate. Most leases start out with a 12,000 annual limit, but if you feel your business may use more than 12,000 miles in a year — it makes dollars and sense to pay for the extra mileage. Otherwise, you could be liable for the additional mileage as well as wear and tear charges at the end of the lease.
What if you expect for your business to allot significant mileage? Go with a more flexible, business-friendly open-end lease. These leases are the preferred solution for most of our commercial customers and offer the type of flexibility your business needs. Read more about open-end leases vs closed-end leases.
Residual Value of Lease
This is how much the car is worth after your lease ends.
The residual value is a car leasing term used to describe the value of the vehicle at the end of the lease. This figure also represents the amount the business expects to be able to sell it for. The residual value is directly related to the monthly payments and depreciation.
The more the vehicle depreciates, the less its residual value will be at the end of the lease. Simultaneously, if a vehicle has a high residual value at the end of the lease, your monthly payments will be lower.
Getting Started Is Easy with Carlease.com
We offer flexible leasing options and work within your budget!
Whether you're a highly informed small business leaser or if you've never considered a small business lease, the experts at Carlease.com can help. Our small business leasing experts will work to understand your unique needs. Then, we will guide you to the best small business car lease solution.