It may be that business car lease offers cheaper monthly payments than buying but in the long run, you know you will pay more money on a vehicle that is depreciating than buying it outright. So why do business owners opt for business car lease rather than saving a few pennies or dollars and buy outright?
One reason might be cash flow. Keeping money in the business rather than taking it put to buy a car can mean the difference between survival and death. Another reason is clearly image; turning up to a client in a new executive car can generate business beyond the extra cost of the car. A further consideration in leasing new rather than buying used is the great fuel economy new vehicle s are delivering recently. In fact some are so good, you wonder how car manufacturers have been able to achieve this in such a short time, or maybe that always could have done this, but chose not to because the market did not demand it at that time.
The final consideration of leaving money in a business is deciding what you can do from a commercial point of view with that money. If there is a business argument that you can take £20k and make it into £40k in 3 years, there is a fundamental no brainer, why save a few grand on car lease when you can make £20k keeping the money in the business.
So when considering business car lease it makes sense to calculate the real cost of the car and what you can do with that money if you chose to lease. If you loads of money on the bank, then it will be cheaper to buy, if you need that money to grow the business then business car lease could be right for you.