Minibus Leasing Blog

Key reasons why leasing as minibus is often the better option

24/09/2024

Leasing a minibus instead of buying one can be a more practical and financially savvy choice depending on your situation. Here are key reasons why leasing is often the better option:

1. Lower Upfront Costs

• Leasing typically requires a smaller down payment allowing you to access a minibus without a large upfront investment. When buying, you usually have to pay a sizable portion of the vehicle’s cost upfront.

2. No Depreciation Worries

• When you lease a vehicle, you don’t bear the cost of depreciation. Vehicles, including minibuses, lose value over time, but in a lease, this is the leasing company's responsibility. If you buy the minibus, the value drops as soon as you drive it away.

3. Lower Monthly Payments

• Monthly lease payments are generally lower than loan payments on a purchase. Leasing essentially allows you to pay for the period in which you're using the minibus rather than paying for the entire value of the vehicle.

4. Flexibility

• Leasing offers more flexibility, especially if your needs are short-term or temporary. You can lease a minibus for a few years and return it at the end of the lease. When you buy a vehicle, you're committed for the long term and may face challenges or losses when selling it.

5. Latest Models & Features

• Leasing allows you to upgrade to a newer model every few years. You’ll always have access to the latest technology, safety features, and fuel efficiency without worrying about owning an older vehicle with outdated features.

6. Maintenance & Repairs

• You can decide to take out a maintenance plan when you lease your minibus that protect against costly repairs. With a purchased vehicle, once the warranty expires, all maintenance and repairs fall on you, and those can be expensive, particularly with larger vehicles like minibuses.

7. Tax Advantages (For Businesses)

• If you’re leasing for business purposes, leasing payments are often tax-deductible, which might not be the case when you purchase a minibus. This can make leasing more attractive financially for companies.

8. No Need for Resale Hassles

• When your lease term ends, you simply return the minibus without worrying about selling it. Selling a minibus, especially an aging one, can be time-consuming and might result in a significant financial loss.

9. Cash Flow Management

• Leasing frees up cash that can be used elsewhere in your business or personal finances, whereas buying a vehicle ties up more capital in a depreciating asset.

Our experienced team is on hand to talk through all of the benefits of leasing a minibus. We work with many businesses, including schools and care homes and can advise on what makes and models are in stock or available soon, which can be driven on a normal driving licence and much more.

Get in touch today!