Business Advantages of Automobile Leasing
A lot of businesses have grown used to providing their transport needs by purchasing cars and vans from local dealers. Locally based garages are generally favoured as they are idally located to provide servicing and maintenance when required. Business will usually negotiate a significant discount due to the quantity of vehicles required and the ongoing business they will be providing to the supplier.
But the current economic gloom is making many businesses rethink the way in which they finance their transport needs.
Accountants and finance departments want to cut costs but, obviously, this must be achieved without any impact on the profitability of the business. Lots or businesses are rethinking the provision of company cars. Instead of providing their executives and sales people with their own dedicated company car, bought from the local dealer, many are turning to business car leasing arrangements. Some are choosing to use a car pool of leased automobiles that can be used by any member of staff who needs a vehicle.
It has been estimated that the leasing approach is saving businesses between 20 and 60% when compared to their previous transport costs.
Leasing rather than buying is the approach taken to vehicle finance taken by many businesses that make use of commercial vehicles and vans. Leasing vans and trucks is not new to business but was previously primarily used by larger organizations. The current recession has led to many small and medium size enterprises opting to lease their commercial vehicles rather than buy them outright.
Businesses can take advantage of the many advantages that leasing can provide. The initial outlay is minimal, there are some useful tax advantages and the fixed, regular monthly payments can help with budgets.
One of the main disadvantages is that the business never actually owns the vehicles which remain the property of the vehicle leasing company. Another disadvantage is that you must generally agree the prospective annual mileage when taking out the lease contract.
If you are a business, of any size, you would do well to research how much you could potentially save and the advantages that vehicle leasing could bring to your business.
Citizens Automobile Finance
Tags: auto leasing, company car leasing, van leasing, vehicle leasing
