Commercial car refers to vehicle use in the business work. A person may need one or more vehicle to serve their business requirement. People who deal with loading or unloading stuff often require heavy trucks like trucks to do the business tasks. However, at the initial stage buying such a heavy vehicle may cost you too much and such investment won’t be a wise one.
Yes, employers earning a huge benefit every year look forward to buying every essential thing like machines, vehicles, etc. independently. Otherwise, renting/leasing is the preferred option to get the vehicle service.
People often think of buying following the perspective of ownership, invest at a time and take the advantage for life long. However, buying such a heavy vehicle isn’t a cake walk, it requires huge saving. You would require to pay the heavy instalment with interest every month, however this is not the case with commercial car on lease. There is a lot of money relaxation.
In this post, we will discuss the two ways to get a commercial vehicle, so one can have a proper idea of buying or leasing before making a final decision. So, let us get started:
Commercial Vehicle Lease:Â
Most of the business ventures need car. Some require even many vehicles at a time. Renting a taxi has been evolved into booking an auto/car to reach to your destination. So, these is a huge demand of commercial car on lease.
Buying a car isn’t as difficult as buying a heavy vehicle like a truck to serve the business purpose. With a commercial truck on lease, you would require to pay monthly payment that would get decided on the mutual agreement of you and leasing company. Usually, the vehicle’s leasing payment are affordable and exempted from the income tax.
The leasing company takes care of all the periodic maintenance work unless there is no harm done purposefully. The leasing period could be of 2 to 5 years as per your need. There is a clause of extension of leasing period too.
There is only one drawback of commercial car on lease. You would require to return the vehicle to the leasing company once the period is over. You can’t have it for life long.
Commercial Vehicle Loan:Â
Buying a vehicle is a matter of investing a huge money. Thus, banks come forward to offer loan to own a desired vehicle. When you went to buy a car, the professional shows you the car/truck and explains you the vehicle loans condition.
Here also the person would require to pay monthly instalments unless the loan get over. Along with the monthly instalment the person has to pay tax added to it. And before paying instalment, the buyer requires to pay at least 10% of the vehicle’s total cost as its down payment. Once all the necessary payment would get paid, the buyers would be considered the vehicle’s sole owner.
Now, you could compare the two modes of transections while using a vehicle. If you don’t have enough money and the vehicle’s need is urgent then commercial car on lease is the suitable. Else you could buy a vehicle by taking commercial car loan.
