Leasing a Commercial Vehicle or Buying? Which Option Benefits Your Business More?

If you own a business, you know how important it is to have the right commercial vehicle. From product deliveries to partner transportation or carrying your equipment, the vehicle is a work tool.

The big question, however, is: Should I buy or choose leasing for a commercial vehicle? The truth is that both options have their pros and cons. In the end, what matters is what fits your business needs best.

At Hertz, you will find leasing solutions specifically designed for professionals—offering cost savings, flexibility, and access to the latest vehicle technology. But before that, let’s take a closer look at what buying and leasing actually mean.

Buying a Commercial Vehicle: Pros & Cons

Pros

• You are the owner: The vehicle belongs to your business and can be considered an asset.
• Complete freedom of use: No contract restrictions or usage limitations—you have full control.
• Resale value: When you no longer need it, you can sell it and recover part of your investment.

Cons

• High upfront cost: Purchasing requires a significant investment, which lowers business liquidity.
• Maintenance and insurance costs are yours: Service, spare parts, breakdowns—all add up, leading to higher ongoing expenses compared to leasing.
• Depreciation: The vehicle loses value over time—and significantly.
• Low flexibility: If your business needs change—e.g., needing a larger vehicle—you’ll need to invest again in a new one.
• Technological obsolescence: New models keep improving; your vehicle will eventually fall behind.

Leasing a Commercial Vehicle: Why It's Gaining Popularity

Pros

• No need for large capital: You can start with a low initial cost and keep your liquidity for other investments. Only a small down payment is required.
• Fixed monthly cost: Monthly payments usually include maintenance, insurance, and road taxes, no surprises.
• Vehicle renewal every few years: Always drive a new or modern vehicle while avoiding wear-and-tear and high long-term costs.
• Tax benefits: Monthly leasing payments are counted as business operating expenses.

Cons

• No ownership: At the end of the contract, the vehicle must be returned unless you pay extra to purchase it.
• Certain limitations: Depending on the contract, mileage or cross-border usage restrictions may apply.
• Long-term commitment: Ending a leasing contract early may be difficult or costly.

Who Is Leasing Ideal For?

• Startups & small businesses: Leasing doesn’t weigh down the balance sheet and allows focus on investment and growth.
• Seasonal businesses with fluctuating needs: Adjust fleet size according to demand without long-term commitment to ownership.
• SMEs: Require liquidity and prefer predictable monthly expenses that include insurance, service, and road taxes.
• Businesses with large fleets: Need frequent vehicle renewal and want to avoid maintenance, insurance, and resale burdens.
• Self-employed professionals (doctors, lawyers, engineers, etc.): Looking for a reliable corporate vehicle with fixed monthly costs.

Conclusion

There is no single answer that fits everyone. The choice between buying and leasing depends on your business needs and budget. However, if you want flexibility, lower costs, and access to a modern vehicle fleet without unexpected expenses, leasing a commercial vehicle from Hertz is the smartest option.

Ready to upgrade your business?
Choose leasing for a VAN, SUV, or any other commercial vehicle from Hertz and give your business a boost in the most economical and flexible way!