Bank Financing a Vehicle vs. Leasing a Vehicle

Over the past few weeks, we have been discussing techniques for when the time comes to choose the perfect livery vehicle for your fleet. As a livery vehicle operator, you should be aware of all options in order to purchase the best vehicle in the most financially fit way possible. It may be overwhelming when you first think about finances associated with your vehicle, from the vehicle itself to the livery insurance. Luckily, you have options! Let’s talk about the benefits of bank financing versus leasing your vehicle.

Bank Financing:

According to the National Limousine Association, “banks have a menu of items as opposed to leasing companies that most likely have many restrictions on to purely collateralized equipment.” As a livery vehicle operator, you may have a good relationship with your bank and will be able to ask for money. The benefits of bank financing your vehicle are:

• A much lower interest rate;

• A chance to avoid excess mileage fees;

• A chance to avoid hidden fees that a lease may have;

• An easier exit out of the vehicle.

Leasing:

Again, according to the National Limousine Association, “leasing companies borrow money from banks at the best possible rate, and then refinance it out to anyone who wants to borrow it again.” This type of program will benefit:

• People who do not have the best credit score;

• People who may not have a down payment for a vehicle;

• Drivers who may want to choose a different vehicle in a few years down the line;

• Drivers with low-mileage.

Now that you are aware of your options, it is time to make a decision! Once your finances are figured out, it is time to look into our affordable and reliable livery insurance. Without coverage, your vehicle, drivers and company will be at risk each day. After all the time and effort put into choosing the best vehicle for the best price, the last thing you want is to face a financial loss or worse, an uninsured claim from a lawsuit. Be sure to check out our policies, from workers compensation to garage insurance. We would be happy to protect your new vehicle!

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