Home – New Forums Money matters Buying Vs Leasing a vehicle for business

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  • #965090
    Symon
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    Hi there,

    I was wondering if anyone has actually done the maths on which option (leasing or buying) saves you the most amount of money? For example which gives you the greater tax break?

    Cheers,

    Symon.

    #1010029
    Burgo
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    If your looking at SAVING MONEY then buy If you want to maximise your tax benefits then Lease it is that simple.
    Leasing does not tie up you cash flow either or reduses any capital allowing you to grow your business.

    #1010030
    beancounter
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    There’s no simple single answer to you question – It depends on
    1) how your business is structured – whether it’s a company / business /sole trader purchase
    2) your business / personal tax situation
    3) how long you intend to have the lease / purchase the item

    Too many variables to give a “general” answer here

    Speak to your accountant, assuming that s/he has a handle on your financials – A solution that suits one business may have an adverse effect for another business

    #1010031
    cwm67
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    I think it is best to hire purchase and save your cash , capital of other borrowing for working capital requirments ( stock purchases , and expense payments)
    motor vehivle loans are pretty easy to obtain atthe moment and why use up your capital when the rates are low and easy to obtain

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