A business will need to take into account various operational expenses. One of the most common (and potentially burdening) involves fleet vehicles. It is a foregone conclusion that such vehicles represent the lifeblood of any organisation and yet, they can be problematic at times. This is why owners choose to leverage the advantages associated with fleet vehicle leasing as opposed to making outright purchases. What benefits can you enjoy and how can these directly translate back into the success of your firm?
The Benefits Of Commercial Vehicle Leasing vs Purchasing!
Maintaining Positive Cash Flow
There is no doubt that an undeniable advantage specifically associated with commercial vehicle leasing is that this represents a cost-effective option. Payments are generally spread out over a predetermined period that can range anywhere from 12 months to five years. So, monthly instalments will be much more manageable. This enables an organisation to enjoy a positive cash flow during leaner times of the year.
This is a lesser-known benefit and yet, it is just as critical from a liquidity point of view. Let’s imagine that a business chooses to purchase a new van. They will subsequently be obligated to pay an additional 20 per cent VAT during the initial transaction. Please note that this same amount translates to any additional vans; an obvious concern for organisations which need to possess a number of vehicles in order to accomplish day-to-day operations.
On the contrary, fleet vehicle leasing works in an entirely different manner. A firm will only be obligated to pay value-added tax on the equivalent rental amount; offering up massive money-saving benefits. Please note that there are many times when VAT can be categorised as a business expense. This will provide an even greater financial windfall.
Functionality and Reliability
A fleet vehicle leasing company provides an additional set of advantages. These revolve around the state of the units in question. Commercial businesses need to be able to rely upon their modes of transportation if they hope to meet the demands of their client base. This is even more relevant when referring to industries such as construction and painting, as employees will often be required to travel significant distances on a daily basis.
Commercial vehicle leasing does away with the majority of common maintenance requirements. As it is in the best interest of the provider to make sure that all units meet stringent quality checks, the chances of a breakdown or mechanical failure have been dramatically reduced. In the rare event that a problem occurs, the leasing company will be obliged to make any repairs.
Enjoying the Latest Technological Innovations
There is no doubt that vehicular technology has advanced at an amazing pace. Innovations such as automatic GPS tracking and rear-sensing cameras aid in navigation and offer additional level of safety. The issue is that these amenities can prove to be quite expensive additions if a vehicle is purchased outright. This is not necessarily the case in terms of a leasing programme. Customers will have access to the latest gadgets without being forced to spend more than they are willing. Employees will appreciate these comforts and such advancements likewise reflect positively upon the company itself.
Caversham Vehicle Hire offers a number of unique rental options if you have been looking for a greater sense of flexibility. We are a highly respected fleet vehicle leasing company and we will be more than happy to provide you with a quick quotation within seconds. Leasing plans are wise choices for any business to consider, so please contact us to learn about the additional services that we can offer.