One of the biggest challenges a new company will face is their budget, and many companies will forget to put aside money for external tools – such as transport vehicles. Not having a dedicated set of vehicles tied to your company can be an issue in the future: Go Green Leasing has provided this list of 5 reasons why new businesses should lease their vehicles, rather than buying them outright.
You can cheat past your price range
The money you invest in a leased vehicle, monthly, will always be less than if you bought it normally. This gives you access to a much wider range of choices and extra features that would be too expensive under normal circumstances – a delivery company may be able to afford larger vans, whereas a taxi service could use the ‘spare’ money for GPS systems.
It also allows a single business to ‘own’ more cars at once – if these cars are your primary source of making money, having a larger number of available vehicles can increase potential profits dramatically. For very low-budget start-up companies, it may be the main factor that allows them to own cars at all.
It can be a gateway to proper car ownership
If you decide that a car you’re leasing is perfect for your business, you’re usually able to buy it outright. This can be an excellent way of choosing the ‘signature vehicle’ of your business, since you get at least a year’s worth of time to evaluate and observe its overall performance.
Small businesses can use leasing to grow into a full-sized company, then purchase their leased vehicles to add company logos or extra equipment as needed. Whilst it’s more expensive in theory, the ability to test out different vehicles without being committed to them can save a lot of time and money over a business’ lifespan.
It can be much easier to manage
A single, repeated payment is far more manageable than the varying prices on conventionally-bought cars. Each new car leased adds a flat amount to the outgoing payments, so the calculation is as simple as adding together the lease prices of each car – none of these prices will vary unless they’re re-negotiated or re-leased.
The lease prices are usually calculated based on value and CO2 emissions, so an electric car can be even more convenient for newer companies – the lack of any direct emissions makes the lease price far lower overall.
Maintenance packages can prevent unexpected payments
As with any car, leased vehicles need yearly servicing and occasional part replacements, even if they’ve barely been used and have never been involved in an accident. Having to pay for all these services can turn a month’s profit into a sudden heavy loss, and (in extreme cases) could even end up destroying your business before it can get off the ground.
Maintenance packages are a far more convenient way to pay these necessary costs. Essentially the leasing-equivalent of paying for maintenance services, these packages are added on to the monthly cost of the vehicle, making it another consistent payment that won’t lead to sudden surprises.
You don’t have to commit
Cars are an ever-evolving market – we’ve seen that in the rise of electric cars – but personal car leasing has made it much easier for businesses to update their image or get access to bigger and better vehicles.
Since leases are for a fixed length (agreed upon at the start of the lease), businesses are able to choose a new vehicle every time an existing lease runs out – there’s no need to commit to a certain model or make for several years in a row, which can help keep their vehicle roster efficient and versatile.