Why Accountants Advocate Car Leasing as a Means of Repaying Debt

May 13, 2014

There are certain advantages to buying a car over leasing one, most notably owning an asset at the end of the repayment period which, amongst other things, can be used as collateral when applying for finance in the future.

Whilst there are certain advantages to buying vehicles over leasing them, it can’t be denied that personal car leasing is the better short term option because it incurs less monthly expenditure and there are less costs involved — no insurance, MOT, road tax, etc.

For anyone with debts to repay this is something to sit up and take notice of and your accountant, if you’re savvy enough to enlist the services of an accountant, will likely advise car leasing as a much better option than buying a car with a car loan or finance.

What’s more, this isn’t only true of individuals but also business entities, so if your business has incurred debts that you’re looking to repay quickly and comfortably, you’re also advised to explore the car leasing options that are available to your business — you’ll find you have many to explore.

Why lease a car and use accounting services?

In addition to repaying your debts in a timely manner, there are a number of reasons why you should consider leasing a car for business or personal use, as there are for using accounting services, especially if you own or manage a business organisation.

  • Car leasing expands your vehicle options, i.e. you can get about in a nicer leased car than a car you’ve bought because car leasing is more affordable
  • Accounting services help individuals and business organisations keep their finances in order, i.e. in the black rather than straying into the red
  • Car leasing, depending on the contract, enables individuals and business organisations to change cars every few years so they always have a new car
  • Accounting services, such as wealth management and tax planning, aid individuals and business organisations in making financial decisions
  • Leasing a car rather than buying one incurs less expenditure and there are often tax breaks available for business organisations
  • The services that accountants provide, for example, tax and end-of-year returns, help businesses and individuals to avoid taxation problems

These are some prominent examples of reasons that have provided business organisations and individuals alike with the impetus and motivation to explore their car leasing options and enlist the services of accountants to help them with their financial affairs.

Moreover, any business or individual with debts to repay is strongly advised to consider business or personal car leasing as an alternative to incurring further debt by taking out a loan or applying for car finance, which is something that their accountant will also likely advise them to do.

The difference that car leasing and accountancy services can make to your business or personal finances is nothing shy of remarkable. Consequently, consider the points made here to take an active approach to your financial situation with the aim of enjoying financial freedom.