Question

You are planning to acquire a delivery truck for use in your business for five years. Summarize the costs of purchasing versus leasing, and list other factors that might help you decide whether to buy or lease the truck.

Consider this as if it were:

-          your company

-          your money

-          your financial statements

Answer 1

Refer a below image for the above mentioned question, in a detailed way of explanation.

Answer: The deasion must be based If you can afford you have of leasing well, its not like to change every year, car but not for a trock you business. on financial conditions of business . to go for porchasing instead a car which you would leasing might suit for your are going to use in your you most not yet rates are insure the owner usually your leased with few highey for are Insurance vehicle because you leases sto left. the leased Vehicles one. It's not easy to when vehicle is added charges exchange leased because of the vehicle with the new you have to pay lot of depreciation and loose in value. Leasing 1. Lower initial investment 2. Access to a broader range of exoipment at all times Buying 1. cheaper over the long term - bet a return on your investment when you no longer need the equipment 2. More flexible - eajoisment Nailabte whenever you need at. 3. Latest usually ealuipment offered 4 Maintenance, insurance etc. handled by another party 4. Less down time s. possible tax advantages * Conclusion: It is difficult to gauge the of buying versos leased vehicle unless you much the vehicle is used, so I think for Vehicle, puschasing is better option. exact cost know how business