Keep Your Limo and Sedan Service Fresh By Leasing
Whether your company specializes in airport sedan service, limousine rental for wedding, limo services or all of the above, there comes a time when you have to decide when to refurbish your fleet. Below is an article I wrote that appears in the most recent issue of LCT magazine.
Looking to Keep Your Fleet Fresh? Leasing May Be For You
By Johnny Greene of ETS International
In this troubled economy, keeping the best available town car and limo service on the road can be a challenge. When the Lincoln Town Car is replaced by a MKZ or MKT or a Cadillac XTS, will you retain that competitive advantage by having your clients step into a brand new (or reasonably new) vehicle every two years?
The opportunity exists with leasing, which affords the option to get a new vehicle every couple of years. There are other advantages, such as omitting the hassle of titles and registrations. There could possibly be tax breaks and benefits centered on the down payment and the overall terms of the lease, depending on your limo or sedan service company’s tax structure. With leasing, your monthly payments can be used on your taxes, so you have a clear-cut picture each tax year of what your deduction will be. But with financing, everything is tied into the depreciation at the end of the term.
One leasing company executive said, “If your accountant says it’s in the best interest of your company to lease vehicles, and you’re planning to turn over your assets every two to three years, then a lease is most likely what you will need.”
Pros & Cons
Like most choices, there are pros and cons to every situation. Click here to continue reading.