Providing your employees with the business vehicles they need to get the job done can be an expensive, but important investment. In many cases purchasing a new vehicle can mean a large lump sum payment that you’d probably rather not have to make. However, there are other options to obtain a new vehicle that don’t keep your important capital tied up and allow your cash flow to stay agile.
Leasing business vehicles, instead of buying them outright, has allowed companies of all sizes around the world to provide vehicles to their employees. It’s allowed them to do so without having to make an initial outlay of large amounts of capital, resulting in a much healthier cash flow.
So what exactly is business car leasing? and how does it work?
What is business car leasing?
Essentially a lease provides company employees with a vehicle they can use for work purposes, and in return the company pays an agreed monthly amount to the lessor. These leases are popular because they allow the company to supply new vehicles to staff without the company having to manage or own the asset outright and the time consuming and potentially costly consequences that come with that, for example purchasing, management and disposal.
What are some of the features of business car leasing?
Access to upgrades: In some leasing arrangements, you may be able to receive a new car each time your contract is renewed. This allows you to continue to enjoy all the benefits that come from a new car, including maintaining a professional company image, better fuel efficiency, performance and reliability.
Support: With an Operating or Finance Lease you can outsource the hassle that goes along with organising the servicing and maintenance of your vehicle as these leases allow you to include maintenance, tyres, annual licensing & WOF services in your contract. Leaving us to manage these aspects of running your fleet means you have more time to focus on developing your business.
Keep your people in well maintained vehicles: If your line of work requires employees to travel offsite on a regular basis a vehicle lease can provide you with peace of mind. You don’t need to be concerned that staff are using their own vehicles while on the job, and you know the car they are in is modern, fit for purpose and well maintained.
Options to meet different requirements: When you are considering the options which are available to you to obtain a new vehicle, you want to have all the options laid out so you can make the decision that’s right for your business. There is mileage to think about, as this may affect your repayments, short-term leases for those expanding quickly and many other factors that come into play. It is important that you know all your requirements, and enter into an agreement which meets your needs.
Fixed Payments: When you utilise vehicle leasing, you do not have to outlay a large lump sum for your vehicles. Instead of an initial outlay, you will be able to make a fixed monthly repayment, which will assist with your annual budgeting.
You do not bear the risk of depreciation: By leasing your next business vehicle instead of purchasing it, you can avoid being adversely by depreciation with fluctuation in the car re-sale market. When your contract ends you simply return the car and can replace it with a new one.
Business car leasing offers you the benefits of a new vehicle, but without the requirement to make a large upfront payment. It can be an efficient way to ensure you and your employees have access to new models without having to pay for them outright. Take your fleet, and subsequently your brand, to the next level by opting in to a business car lease contract that works for you.
Interested to find out more about how vehicle leasing could work for your business? Get in touch with Maxxia today and let our team of experts work with you to identify the best business car leasing deals for your business.