Leasing has become very popular nowadays – and with good reason. This is also true for vehicle leasing; and what may surprise many is that it’s the business industry that popularized vehicle leasing (and not, as commonly believed, the general public). It makes sense: a company that is in need of a whole fleet of vehicles – for their employees or other transportation needs – has to make a serious sacrifice if it wants to purchase several vehicles. This expense is not necessary when the enterprise opts to lease instead. And there are many more advantages to leasing, many of them underestimated. Here’s why it makes sense to lease company vehicles instead of buying a fleet outright.
Planned cash flow
Anyone who has ever been in business will tell you that cash flow is the most important thing in a business – there needs to be more coming in than going out. It’s also important to allocate your capital where it will bring in the most return on investment.
Unfortunately, when buying vehicles such as vans outright, you’re forced to pay a large cash payment as down payment – money that could easily be allocated elsewhere to bring in more profits, such as in inventory or other improvements. Leasing solves that problem, and gives you steady, reliable monthly costs that are easy to afford and plan.
Unwanted vehicles, or need more vehicles?
Your business will invariably have its highs and its lows – you can easily adjust the number of vehicles available for your needs, depending on the situation of the company, if you lease them. When purchasing vehicles, you’re stuck. When leasing, you’re flexible.
Mileage limits and quality
Often your leasing agreement will stipulate the allowed mileage that you can use with the vehicles – this is important when it comes to the leasing fee. It forces the company to plan their trips carefully; hence, the company will be better run and managed. It also means that you pay only for how often you use the vehicle – or better, for how many miles you have to drive.
Maintenance and replacements
The leasing agreement will usually include clauses that stipulate repairs and maintenance. This means you don’t have to have extra crew or expenses when it comes to keeping your vehicles ready and in top condition.
The key here – what all the advantages to leasing come down to – is the combination of stability in planning whilst still having the flexibility to solve all your transportation requirements as the need arises. But whether you opt for leasing or cheap van finance services, it’s about avoiding that large down payment and not tying up large capital that could be used in more important ways; it’s about getting vehicles of quality that could otherwise not be afforded; it’s about giving the company an image it deserves. It’s about being smart.
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