Signing up for a lease on a vehicle for your business or work can help keep your business overheads in check. However, it can be costly if you don’t study your lease or make the most of it. Here are some car leasing tips to remember:
Make sure you know everything about the offer.
Don’t focus only on the monthly payments and interests. When you add the total up with the maintenance expenses of the car, you may end up paying what you can’t afford. Leasing would also have limits in terms of years or number of kilometres. Make sure you stay within these limits to avoid extra fees, or find out if the terms of your lease can be extended.
Be cautious with car maintenance.
Another thing you have to take note of is the specific set of policies they have for the car’s condition. Usually, companies will require the vehicle to be returned in “fair wear and tear” condition. Check their standards, especially to know when you need to replace tyres and brakes, or how often to take the vehicle for fine-tuning, and the like.
Use it to reduce your taxes.
Commercial leasing entitles you to tax deductions when you meet the Australian Government’s guidelines. The expenses you can claim will be subject to certain limitations. For instance, leased vehicles are ordinarily fully tax deductible, but you can’t claim the costs of depreciation. The Taxation Office also recommends methods to keep track of your work-related travel or car expenses.