When it comes to assembling your fleet you
have several options. You can Rent,
Lease or Buy your vehicles. Here is
what you need to know about these options. |
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RENT: |
Renting vehicles requires keeping track of
mileage and and fuel used and return the
vehicle in a specific condition so that when
you return the vehicle you don’t incurr
additional cost. Renting
can be done on a short
term basis. |
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LEASE: |
Leasing or buying requires that your
business have a good credit record so that
it can qualify for financing.
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Leasing locks you in for the period of the
lease and no value that comes with owning
the equipment at the end of the lease.
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If you lease or rent your fleet vehicles the
owner of the vehicle will set the insurance
requirement.
The owner can set a high insurance
requirement that is beyone your budget.
You can get around this by getting a
Business Owner’s Policy (BOP) that covers
your business and your fleet.
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When you lease or rent there can be a limit
placed on how many miles you can drive the
vehicle without incurring additional cost.
Many dealers charge a fee for every
mile driven above the authorized limit. |
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BUY: |
Buying entitles you to a deduction under
Section 179 of the IRS
code.
A better explanation of Section 179
Deductions can be found here.
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