A high number of entrepreneurs are now opting to lease cars for business use. This might not come as a surprise to many if we are to go with the numerous benefits that are destined to come your way. From attractive monthly costs and ability to change cars to keeping pace with changes in the world of technology, you will never regret your decision of leasing a company car. Going back to our topic of discussion, here are two things to keep in mind before you finally lease a company car in Singapore.
- Taxes for Lease Costs
Just as is the case with any other source of financing Singapore, you will have to think about how the taxes are going to work for the lease. Regardless of whether you buy or lease a car, you are only allowed to deduct business expenses for that vehicle rather than your personal expenses. For those who might not know, there are two types of leases for tax purposes i.e. lease as rent expense and conditional sales contract. Be sure to understand what each stands for if you are to make a well-informed decision.
- Lease Term Length
Aside from taxes for lease costs, it is also important to prioritize the lease term length. Shorter-term leases are definitely going to prove costly than long-term leases since the residual value tends to go down faster during the first 24 months. To be on the safe side, it is highly advisable that you match the lease term length to your needs and preferences. Furthermore, you should negotiate a longer lease in order to enjoy a lower monthly payment. This action will go a long way in making sure you do not dig deeper into your pockets when leasing a car.
These are just but some of the most important things you need to keep in mind before leasing a car company. Keep in mind the car leasing company you choose will also determine whether you’ll have a remarkable experience. Choose the wrong company and you are certainly going to regret your decision. To avoid finding yourself in this situation, you can consider opting for commercial vehicle leasing services offered by Ethoz. Get in touch with them today and benefit from quality-assured lorry rental and van rental services in Singapore.