leaseing Or financing a limo what do you all think?

[Filini]

i a m just starting out and i have heard so many reason either to finace or lease just looking for some feedback.

[Salicete]

There are benefits and downsides to both. You really need to speak to your accountant to see which form of vehicle acquisition best suits your business model.

There is no "silver bullet" that works for everyone.

I pay cash, no financing, no interest, no debt, but I have a small fleet, and won't be able to do that forever if I want to expand.

As I said, speak with a financial professional familiar with the livery business.

[Cliff Robinson]

I depends on alot of factors and your status as a company weather an LLC or S Corp of Family business or owner. There are advantages and draw backs to either way so consult an Attorny or CPA for the best advice given your unique situation.

I purchase all mine and do not lease. For me it is the best given my Corp status. I can Maximize the deductions better better but again it depends on your situation.

Call the largest company in your area and ask for their CPA or Corporate Attorney and get some sound advice. My Attorney did not know but my CPA gave me some great information which helped in the long run.

[LIMOJESS]

FOr one or even two cars buying out right seems ok.

But when you have a company that needs too grow that you have to finance the cars.

Why put your eggs in one basket when you can finance the basket and pay over time.

Does anyone buys a house outright anymore?

[Skerdian]

Finance.
20% down, 36 month payments.

Leasing might be feasible only if you have a large fleet and you want to maintain the same exact sort of cars, so you constantly update them after a certain time.

Personally, I like having different types of vehicles, and they are all meticulously maintained with very low miles (oldest car is a 05' stretch with 24k miles). If you take the time and do your homework, you could get top dollar return when you sell your cars. Leasing pretty much kills that factor.

[Salicete]

Originally posted by LIMOJESS:


Does anyone buys a house outright anymore?

I did. http://limos.com/graemlins/thumbsup.gif

[LimoNewbie]

You know, it really depends on what type of fleet you would like to keep/maintain. Weigh the pros and cons, see which ones work for you in your area. In some smaller, less populated areas, financing might work better if the need/want for newer models is lacking, and older models would do perfectly. Then you would have the vehicle for the remainder of the financed term, around 5 years (approx), and have harder time trading it/selling it, when you are ready to purchase a newer model. Whereas in a metropolis, you might need to keep a newer-model fleet, and through leasing you can keep up with the competition, and get the newer model every 3 years or so.

Also, keep in mind that your target market might need the newer body styles, and some manufacturers do change the style every few years or so, some may be drastic changes, some might be barely noticable. So, you take the chance of having "outdated" models, while your competition has the newer models, or, your target market might not care about or even notice your limo is not the latest body style.

[Wade Randolph]

Leasing is always more expensive. Your dealing with two finance sources then. The leasing company and the actual funding company. There are some tax advantages and capital outlay advatages though to lease. Check with an accountant to see which is better for you.

[Dack of Access Atlanta]

We buy completely out right. We completely own all our limos...every 2 years we sell them and buy all new ones again. So much easier and you dont have to finance anything