From sales and marketing to productivity and profitability, running a business can be quite a tall order. However, even if you manage to stay on top of these responsibilities, the troubles that can come with owning one or more commercial vehicles may render your efforts null and void. This is especially true if the nature of your business heavily relies on transport to get the job done. Should any vehicle suffer from an impromptu breakdown or costly servicing, you not only run the risk of upsetting customers but also damaging the business’s bottom line. One possible solution is to lease instead of buying outright…
Reasons why leasing often makes more sense than buying
When it comes to buying, you may struggle to find a vehicle that is within your budget but also meets the wants and the needs of the business. A lot of the time you may have to make compromises here and there or spend more than originally planned, which may have a knock-on effect for the business.
But with leasing, you are less restricted by budget thanks to a range of finance options and affordable monthly payments. What’s more, you can choose from virtually any make, model, size or shape, all of which are brand new and in perfect condition. A quick click on the likes of LeaseVan will show the options open to you when leasing. This also means that staff can get to work on time and perform their jobs with the utmost professionalism.
The whole process of leasing is remarkably simple and straightforward too. As a result, you don’t need to worry about a thing and can concentrate on what matters most – running your business.
The advantages of leasing over buying
Of all the leasing options available in the UK, Business Contract Hire is the most popular because it offers the following advantages:
- Save money – You are able to reclaim 50 per cent of the VAT on the finance and 100 per cent of the VAT on the maintenance
- Cost effective – You can make low initial payments rather than a large initial deposit
- Easy budgeting – You will receive a guaranteed fixed cost motoring experience
- Better margins – You can enjoy improved cash flow within the business
- No surprises – You won’t need to pay for repairs by choosing an all-inclusive maintenance package
- Excellent flexibility – You can choose from a number of different, flexible payment options
The possibility of both leasing and buying
For businesses that like the idea of fixed cost motoring but also want to own the vehicle after the agreed term, a Business Contract Purchase is also possible. Unlike buying a van outright, you can still enjoy low initial payments without putting down a sizeable deposit.
Instead, you will be purchasing the vehicle in a more gradual and manageable way. Fixed payments provide security while also allowing you to budget for other business expenses too.
On top of that, you can even decide not to take up ownership of the vehicle when the agreement ends if your circumstances change.
Written by: Debbie Fletcher