5 Things You Need To Know About Leasing A Business Vehicle
When it comes to building up your commercial vehicle fleet, there are some things you must take into consideration and if you have decided that leasing is the best option for you then here are five things you need to take into consideration:
1. Your mileage might be limited
It’s not a huge issue but leasing a van – whether it’s from a local garage or via LeaseVan.co.uk – might require you to be careful when it comes to mileage as this is restricted on an annual basis. However, if you know how much mileage you do roughly you can probably have a plan created to cater for this.
2. It will save you money on maintenance, but…
Something you might not have considered before is the fact that when leasing a vehicle, servicing is usually covered in the costs, as well as the issue of repairs as you’re using the car or van.
This will save you money in the long run, but bear in mind that you will need to take extra care with the vehicle when it comes to bodywork and the interior – scrapes and scratches or stains inside can lead to you having to pay fees when you hand it back.
3. You’ll enjoy a new car every few years
Most lease contracts allow you to exchange your current leased vehicle for a brand new one, usually every three years. This means you and your employees will always have the very best when it comes to the commercial vehicle, and are able to exchange it for something more fitting once the lease is up – say if your company has grown or downsized at all.
Leasing allows you to choose vehicles that truly fit your needs, without the hassle of having to sell them once they’ve out served their purpose and dealing with appalling depreciation rates.
4. There is the option to purchase at the end
Most leasing companies offer straight lease plans or lease purchase opportunities; a lease plan is the type we’ve just covered where you hand your commercial vehicle back at the end of the contract for a new one. But if you do want to own your vehicle at the end you can opt for a lease purchase.
It all depends on how you see your business evolving in the future or whether you’re simply looking for a cost effective way of purchasing a van or car.
5. You’ll save money
Leasing is simply a more affordable way of getting your hands on a brand new vehicle for your business, there’s usually a small deposit and then a monthly repayment whereas when buying you’ll need to find a big chunk of money to pay for everything up front.
It’s something to take into consideration before deciding on your commercial vehicle options. However, bear in mind that your vehicle won’t technically be yours and you can’t see it as an investment for your company.
When it comes to choosing between leasing or buying a business vehicle, take these points into consideration and lean towards the option that best suits your current circumstances. However, you’ll more than likely discover that leasing is usually the most cost effective and simple solution!