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The Benefits of Leasing a UTE Vs. Purchasing for Tradies

 August 20, 2022

By  Elle Gellrich

Like with your work equipment, you must decide between leasing or purchasing your ute.

Your work ute is an essential part of your business; as such, giving some thought to its financing becomes crucial.

You can buy it outright, or you can lease the vehicle. But I’d think an excellent way to begin is by understanding the differences between both options.

Leasing Vs. Purchasing a Ute

Purchasing a work ute means the vehicle becomes the business’ asset. You can choose to finance the vehicle with a loan or pay for it outright.

What remains constant is that the ute becomes your responsibility. From maintaining the vehicle to carrying out repairs, you make all the decisions, including what happens to the car in the end.

Leasing requires less commitment. At the end of the agreement, your options include extending the lease, upgrading it, or in some cases, paying to own the ute. A lease arrangement keeps you in a better financial position.

It doesn’t end there. Leasing a ute for a trade business has many more advantages than purchasing the vehicle.

Why Leasing a Ute is Better Than Purchasing for Tradies

When you know all about the benefits of leasing, you will be more motivated to find information on Ford Ranger lease deals or any ute vehicle of your choice. These benefits include:

1. Less Upfront Payment

Purchasing a ute may require as much as 20% upfront, but you only have to pay a little to lease. Some leases do not require down payments at all.

Your lease agreement may simply involve payments for registration, taxes, and the regular initial payment for the month. These usually sum up to less than what you would have to put down with a car purchase.

2. Reduced Monthly Payments

Financing to purchase your ute requires higher monthly payments than the low costs you pay with a lease.

Lease payments are calculated based on the car’s depreciation value during the contract period. On the other hand, you will pay for the car’s purchase price, including interest, when financing the ute purchase.

Since the car’s depreciation is what you pay for with a lease, the monthly payments are lower. Fewer payments mean you can increase your savings budget and upgrade your car when your contract is over.

3. Leasing Covers Repairs and Maintenance

Financing companies usually will cover a considerable part of repair and maintenance costs. These are areas that you will ordinarily be responsible for when you purchase the ute.

During the review stage, you will discuss the extent of repairs and maintenance the lease covers and find out the service bills leasing shields you from.

4. Continuous Upgrades

When your lease ends, you have the option to take out a new one and upgrade to a newer model. Buying the van instead means you are stuck with a vehicle that depreciates over time.

Lease terms are usually short, but this is to your advantage. You can drive a ute with the latest technology every few years. You simply return the old car and sign a new lease for a new ute.

Imagine wanting a specific ute yet waiting months to save up for the purchase. You might end up waiting for too long or, worse still, settling for a lower model.

A lease increases your vehicle options as it knocks off the limitations of upfront payments. You can choose an expensive ute that matches your needs and pay for it only while you use it.

5. Fewer Commitments

Tradies who purchase their work vehicles from the onset must get rid of them at the end of their life cycle.

You don’t have to worry about reselling the car when you opt for a lease.

Once the contract ends, you return the ute and choose to renew the lease or not. Of course, you will have to settle the additional payments if you exceed your mileage limit.

Conclusion

Adding a vehicle to your assets indeed sounds great to every tradie but consider the depreciation you will have to deal with eventually. Leasing a ute for your trade business is a wise investment to save money and preserve brand integrity.

Elle Gellrich


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