Benefits to Company Car Leasing
The past few years have seen a massive increase in companies leasing cars instead of purchasing their own personal vehicles; this has helped to cut down company’s high costs and depreciation value which comes with buying a car.
Vehicle leasing has been taking place for a long time but recently it has been rapidly growing in popularity for both private rentals and company rentals. So why has the idea of leasing become so popular?
One of the main reasons will be it avoids vehicle depreciation. Unlike renting a house where you pour money into it only for the owner to benefit when the house in sold at a higher price, vehicles lose value as time goes on. Renting a car means low monthly payments for a car which over time will decrease in value, but unlike owning a car, when you lease is over you just return the older vehicle and replace it with a brand new one.
For companies, buying their own fleet of vehicles provides no financial benefit. Leasing car payments are 35-55% less than repayments on a car loan and also only require a small amount upfront compared to purchasing a vehicle.
A single car with a lot of maintenance costs can be a nuisance so imagine if your company had a whole fleet of vehicles the costs for maintaining those cars will quickly add up. With leasing the manufactures warranty will generally cover the entire leasing period so if anything goes wrong with the car then it will be repaired at no extra cost.
Saving on Outlay
For small businesses saving enough capital set aside to buy a car can be a risky decision. Purchasing a car requires a lot of financial support which can be a lot to sacrifice for smaller businesses. Leasing a vehicle would only require a minimal amount up front followed by low monthly payments.
Keeping it modern
One of the most enjoyable things about leasing is the knowledge that you can have the latest and greatest for your budget and when your lease is over you get to choose another new vehicle so you will only ever be driving something new or a couple of years old. For businesses that need to appear flashy and up to date with technology this is a huge bonus.
Company leasing can also help to keep fuel costs down as newer vehicles have higher mpg than older vehicles as manufacturers continuously improve on their designs. If you are given a company car then your safety is also key to the company so the latest models will also benefit you as they have better safety rating and improved driving features such as blind spot detection.
To find out what deals you can get on a company car please give our sales team a call for your personalised quote.