Vehicles can be a huge bonus for companies depending on the line of work and how the vehicles are maintained. They can be used for promotion, they can show progress and profitability and most importantly, vehicles help to reduce costs and allow for the transport of employs. Vehicles however can be costly and this can impact how positive the use of vehicles are for the company. One of the key areas in which this can be noticed is whether a company buys or leases their vehicles, this choice can allow for huge differences in the company’s success. Below we will see how leasing vehicles is much more beneficial than buying vehicles.
Costs are the number one factor for most business decisions so we will look at this first. Lease agreements usually work on a per monthly basis and these are usually lower than if you took out a loan to buy the vehicle outright. Also added expenses such as taxes and registration are handled by the leasing company thus freeing up more of your time. This is especially important for newer businesses as it means you have more funds available for different aspects of the business and more time to work on bigger projects while still being able to travel.
Leasing a car allows you a much wider choice on what vehicle/s you would like to be used within your company, it also has a huge impact on the company image and can make it appear more professional and successful than its current state. This helps improve clients views and confidence in your company which would bolster work agreements. You can lease a car for day to day operations and for more important business why not lease a Mercedes instead.
With a lease agreement, the devaluation of the car will not affect your company’s future finances. If for some reason your business model changed or ceased operations you would not be left with a devalued vehicle that may cost you more in the long term. Once a lease agreement is completed you can arrange to buy the car if you wished to do so or change vehicle and lease operator. This allows you the freedom to upgrade or change vehicle plans without many added issues. Plus, many leases contain a returnable deposit which can come in handy.
The incentives for leasing a car, especially for start-up businesses are numerous. Financially there are low initial costs, short term agreements take away the financial burden of vehicles if the company happened to come into difficulty and maintenance costs are minimal due to the short time vehicles remain in your possession. Visually newer and better model cars become available which helps the image of the company and this can be done continually if companies change cars for each lease arrangement allowing for a continued positive image. Finally better and longer relationships with you leasing company will allow for more favourable deals in the future.