FOR many businesses who require the use of cars for the majority or just a handful or employees the purchasing of vehicles is simply accepted as an inevitable expenditure.
However, there is an alternative that is rapidly gaining traction as a popular practice among UK companies.
Car leasing – available from companies like The Leden Group – may be a relatively unfamiliar concept but it actually offers various advantages over buying that many businesses can benefit from.
Read on to find out more.
Cars only depreciate in value
Renting property is often considered as a waste of money due to the fact that you are not investing it in an asset that will grow in value over time like with a mortgage. However, cars are not houses and only depreciate in value, meaning that you will never get your investment back when you eventually get around to upgrading your fleet.
It is also the case that monthly lease payments are on average between 35% and 55% cheaper than repayments on a car loan, while typically only a small deposit is necessary.
Maintenance costs are covered
The more vehicles your company owns the higher the overall cost of maintenance will be.
However the car manufacturer’s warranty will typically cover the whole period of the lease, ensuring that any issues that do arise can be taken care of without any additional expense.
You can also add a servicing contract that will cover the costs of such things as servicing and tyres which are regular expenses for businesses who utilise vehicles.
Road tax is also something that is usually covered by the cost of a car leasing deal.
Smaller capital outlay
When buying vehicles for business use it can require quite a significant initial expenditure, however this is not the case when arranging business car leasing deals, given the smaller required deposit as mentioned previously.
This is particularly welcome for smaller or new companies who perhaps do not have the capital for the larger up-front costs required to invest in a brand new motor fleet.
Take advantage of the latest technology
As car leases are only arranged for relatively short, fixed periods businesses are able to upgrade their fleets on a regular basis, and as a result are able to take advantage of all of the benefits available from new cars.
Fuel economy is of particular importance to businesses and this is one area that is constantly being improved upon. By regularly upgrading your fleet you can guarantee that you aren’t spending any more than necessary on fuel costs.
Safety is also an essential consideration for businesses looking to acquire vehicles for their employees, and again this is something that is constantly being advanced in modern cars.
Looking to enjoy all the performance benefits of modern vehicle technology? Although perhaps not something that you would have considered for your business there are many merits of car leasing that are worth bearing in mind.
This guest post was written by John Rooney on behalf of The Leden Group, specialist providers of car leasing for businesses and private customers.
