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by Joe LaBello, Sutton Leasing

Following are the Top 10 Benefits of Leasing Company Vehicles:

1. Improve cash flow
   Leasing requires less money up-front and offers lower monthly payments through use of residual values.
2. Lower total cost
   When you consider the Time Value of Money benefit from lower monthly payments, leasing generally saves money overall.
3. Off balance sheet accounting
   You can reduce the amount of debt on your balance sheet and improve your company's financial picture by leasing, thus increasing the value of your business.
4. Reduce tax liability
   Both income tax and sales tax liability can be minimized by leasing vehicles. Many leased vehicles are exempt from IRS depreciation limitations. Also, most states allow use-tax to be paid over time on monthly payments versus paying sales tax on the entire sale price at time of purchase.
5. Increase bonding capacity
   Leasing can strengthen financial ratios and increase bonding capacity allowing you to compete for more and larger jobs.
6. Separate line of credit at competitive rates
   Leasing companies offer a separate line of credit for you to fund fleet vehicles, eliminating the need to take money out of retained earnings or draw from existing credit lines.
7. Access to any make/model at lowest prices
   Proactive acquisition strategies to encourage factory ordering, and unbiased vehicle selector recommendations geared toward lowest cost of ownership, set some leasing companies apart as true consultants in an overly-aggressive sales-driven automotive industry.
8. Consolidated monthly billing
   All vehicle payments are itemized on a single consolidated monthly statement for convenience and ease of processing payment.
9. Avoid unnecessary debt on personal credit reports
   Company vehicle loans through most leasing companies are not reported to the credit bureaus for guarantying officers
10. Fleet management programs available to reduce operating expenses
    Fuel, maintenance, and disposal programs are available to control and reduce fleet expenses.

If you're not leasing your vehicles through a fleet leasing company, you should consider doing so today!