You would have heard about vehicle leasing, and if you are thinking about leasing a vehicle pool for your company, then a reputed corporate vehicle leasing company may help you in this. But do you know what leasing is all about?
What Is Leasing?
A very straight-forward explanation of leasing is that it is very similar to renting. You will choose a vehicle for a specified period and will be paying a fixed fee. You will be selecting the model that you like, and the leasing contract is written specifically for you. It contains the details like the annual mileage, the duration of the contract period and how the payment is going to be structured. Many factors come into play when the total cost of the lease is being calculated:
- The value of the car at the time of leasing
- The estimated value of the card at the end of the leasing
- Annual mileage allowance
- Lease duration
It is a proven and attractive option for many businesses given the lower capital need. Typical lease agreements vary from 12-60 months. The leasing works by way of paying a monthly rental fee. In most cases, a set mileage is agreed and it crucial not to exceed the limits. Depending on the lease, the car maintenance may be included, and other consumables like tyres and brakes may also be part of it. When the contract expires, the car is handed back to the leasing company. Few benefits that come along with corporate leasing are:
1. No Depreciation
You will surely want to put your money wherein the growth of the business. With the help of leasing, you will not have to take loans for creating a vehicle pool. There will not be any need for initial capital to buy company cars all that is need to be paid is a rent-like payment. It means that you can budget the cost easily within the finances. Once the lease duration ends, you will not have to worry about the selling the car as the leasing company will take care of it.
2. Better Cash Flow
With the minimal capital investment, you will be able to focus more on the critical aspect of the business as the cash-flow will be significantly improved.
Furthermore, you will not be using the money on the depreciating asset and can use the capital in business expansion.
3. Get the Vehicles You Need
When you reach out to a reputed corporate vehicle leasing company, you can get the vehicles you need. You can also negotiate on the model to get the latest ones. Expert leasing companies can get the vehicle that you might not have thought about. In this way, you will be able to get a reliable fleet which is durable and offers excellent fuel economy.
Now you are ready to reach out to a corporate vehicle leasing company and get the best deal for yourself.
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