This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 2. The company could decide to replace its vehicles more often, which would result in the leasing of vehicles being more efficient. 3. The company may be able to have a repair clause included in the lease agreement, meaning that if a vehicle requires major repairs before the lease is up, the lessor must incur the cost of the repair. This would remove the risk of buying a vehicle with manufacturing faults. Disadvantages: 1. The company may be restricted in the make of the vehicle that it is able to lease. 2. The periodic payments may be higher than they would be if the company borrowed the money to buy the vehicle. 3. It would likely cost more for the lease if the company wanted the vehicles painted a particular colour, or if it wanted the company name and logo put on them....
View Full Document
This note was uploaded on 12/21/2010 for the course MGT 201 taught by Professor Uppal during the Spring '09 term at University of Toronto.
- Spring '09