Vehicle Fleet Leasing
Vehicles can be extremely valuable assets to a company if you need to make deliveries, travel to various offices, visit customers or carry equipment. Deciding between leasing or purchasing a vehicle can be challenging. If you are eligible for fleet leasing programs, it can be financially beneficial to take advantage of this form of equipment leasing.
Leasing A Fleet Of Cars Is Easier Than Ever Before
Leasing a fleet of cars or other type of vehicle can be extremely advantageous for your business. If your business buys or leases ten or more vehicles, you are qualified as a commercial fleet buyer. Once you obtain your fleet registration number through a dealer, you will have access to manufacturers’ and dealers’ fleet incentive programs. A lot of dealers are now offering their own programs to business owners and even if you lease a few cars, you may be able to find a dealer willing to offer you a program.
Will It Benefit Your Business?
It may be wise to consult your accountant when deciding whether equipment leasing will benefit your business. They can help you estimate the overall cost including any monthly leasing payments, gas and oil, insurance, license fees and maintenance. If you have a large enough fleet, it may be wise to hire someone to manage it – an additional cost to consider.
Additional Factors To Consider Before Making The Decision
One alternative to consider is whether it makes more sense to have your employees lease their own cars with an allowance. Additionally, if your cash flow is unpredictable month to month you should find out ahead of time the implications of terminating a lease early. It is also critical to compare the prices of buying the vehicles with the lease prices. If dealers have vehicles they have been trying to get rid of, you can score an amazing deal. There are also the higher insurance rates to consider when you choose to lease. Since the dealer owns the vehicles as opposed to you, they insurance coverages will most likely be higher. Shopping around for prices can help you find the best deal.
Equipment leasing such as vehicle fleet leasing can be extremely advantageous for your business and they are easier than ever before to qualify for. It is, however, wise to work with an accountant to discuss all the costs including monthly payments and the insurance rates. In some cases, it may be a better choice to have your employees lease their cars or even purchase the cars you need.