Running a small business in an increasingly competitive market is always difficult. It’s no wonder that almost all of SMB owners are on the lookout for ways to cut corners and free up extra cash. Making changes to core processes could potentially have disastrous consequences, though, so the ideal situation is a solution that both saves you money while strengthening your company’s chance to compete.
Switching to a leasing model when it comes to supplying your employees with a vehicle can be one of these solutions. Not only save you money in the long-term, but it will also save you a lot of time. No longer will you have to worry about selling off older vehicles, and trying to recoup as much value out of the asset as possible. At the end of the contract, you can simply choose a new car or continue to use the same vehicle under a new deal.
Another one of the main advantages customers of leasing contracts love is the ability to choose from a wide range of vehicles. Often times, they’re able to afford vehicles that were otherwise outside of their price range. Sometimes, choices can slow down the process though. If you’re planning on picking a fleet of vehicles, try to decide on a set vehicle type and stick to it. Letting staff get too hung up on specifications regarding additional features or specific colors palettes can only lead to delays.
Finally, leasing contracts generally work over two-to-four year plans and operate on a fixed monthly rate which takes into account annual mileage and the type of vehicle you’re leasing. Certain lenders, like Lease Car, can even incorporate breakdown cover for added peace of mind. The gives you the ability to spread payments out over the long-term is often highly advantageous to businesses, particularly those that were used to paying out large sums of money upfront in their past fleet financing models. With an improved cash flow, you can focus on developing new products, reducing your company’s debt, or improving any other core processes.
As with any significant new purchase, it’s important you read the fine print before you sign any dotted line. Start by choosing a well-estimated annual mileage limit and make sure you are familiar with the excess charges should you exceed these. You should also ensure you’re agree to their definitions for what constitutes as “fair wear and tear” for when it comes to returning your vehicle.