Vehicle Leasing Saving Business In Recession
Many businesses traditionally support their transportation needs by purchasing vehicles from local dealers. Locally based garages are generally favoured as they are idally located to provide servicing and maintenance when required. Most businesses will be able to negotiate significant discounts due to the volume of vehicles they require and the ongoing maintenance and servicing.
But the challenging economic climate is forcing many businesses, big and small, to rethink the way in which they finance their transportation needs.
Cost-cutting is what the accountants and finance departments want, but this must be carried out without any impact on the businesses ability to continue to operate profitably. Many businesses are cutting back on their company car provisions. Instead of providing their executives and sales people with their own dedicated company car, bought from the local dealer, many are turning to business car leasing arrangements. Some businesses are now using a car pool of leased vehicles rather than providing dedicated company cars.
It is estimated that this approach is saving companies between 20 and 60% of their annual transportation costs.
The same approach has been adopted by many companies requiring commercial vehicles. Leasing vans and trucks is not new to business but was previously primarily used by larger organizations. Today’s challenging economic downturn has resulted in many small and medium sized enterprise choosing to lease their vans, refrigerated trucks and minibuses rather than buy.
Businesses can take advantage of the many advantages that leasing can provide. There are tax advantages for most businesses and the fixed monthly payments help accountants to budget their transport costs.
One of the main disadvantages is that the business never actually owns the vehicles which remain the property of the vehicle leasing company. Another potential disadvantage is that you must generally estimate the anticipated mileage and if this is exceeded significant costs can result.
If you are looking at ways to save costs for your business it is recommended that you compile the details of all of your business transportation requirements. This would include all of the company cars, vans, trucks and commercial vehicles that you use. Look closely at the annual mileage for each vehicle along with the annual servicing and maintenance charges. Also, take a look at your accident records to see how ofent you’ve had to make claims on your insurance. Armed with this information approach at least three of the top vehicle leasing firms in your area and get some quotations. The automobile industry is suffering more than most and this is encouraging many vehicle leasing firms to offer significant discounts over and above those quoted from their websites. If you have a potentially substantial vehicle leasing requirement you are likely to be offered a very attractive deal.
If you are a business, of any size, you would do well to research how much you could potentially save and the advantages that vehicle leasing could bring to your business.
Tags: auto leasing, car leasing, leasing vans, leasing vehicles, van leasing
