If you need a new car for your business, you may find different paying options from fleet management companies: down payment, making a loan, or leasing it. Down payment is expensive even for most businesses, but leasing is more and more popular, because it provides numerous advantages that are hard to be overlooked.
• Affordable interests – This is one of the main advantages of leasing a car and the reason why many people and businesses choose this option to buy a car.
• Unlike in the case of making a loan, leasing the car gives you the opportunity to negotiate.
• Buying a car in leasing is a much easier process than getting a loan, which is definitely an advantage, considering that businesses cannot really afford to wait. Time is money and waiting may become synonym with downtime.
• Low monthly rates – Leasing deals are personalized and, depending on your income and needs, you can set a monthly affordable rate.
• You benefit from advantageous offers – There are many leasing companies that offer customers different benefits for leasing a car. For example, exemption from the payment of some fees, free repairs etc.
• You can even find used cars in excellent condition that you can purchase in leasing.
Leasing heavy equipment is a popular solution, used by individuals and businesses. Currently, there are two main forms of heavy equipment leasing: financial and operational.
Financial leasing is the most common one. This financing option is similar to a bank credit. The customer (also called “the lessee”) purchases the equipment through a loan, which he/ she then repays in installments.
During the contract, the leasing company owns the equipment; only after the end of the contract, the client becomes the owner. However, the risks and benefits of ownership pass on to the user, when the contract is signed.
Operational leasing is a less-used solution. This type of contract is rather like a rental contract.
Therefore, the monthly rent will not be calculated by taking into account an interest rate, but it will depend on the degree of depreciation of the equipment during the period of the contract and the profit margin of the leasing company.
In the case of operational leasing, the customer will not become the owner of the equipment, when the contract ends. If they want to buy the equipment, they will have to negotiate a price at the end of the contract, with the leasing company, as if they were buying the equipment directly from the second-hand market.
Depending on your business and how much demand there is for your products and services, it can be important to increase the number of fleet vehicles you lease. While it’s an established fact that smaller businesses are better off investing in leasing fleet vehicles rather than buying them, it’s not easy to find out exactly how many you need and how many you can afford. Quality fleet car leasing in Denver CO can help you determine the best options for your business.
Let’s say in the beginning you only needed 5 cars to get all your tasks done on time. Now that your business has grown, you might have to increase the number of cars you lease and the number of drivers you hire. However, along with the price of that decision, you also have to account for spending more money on gas and servicing your vehicles more frequently.
All these factors will lead you to an estimated amount that you’ll have to pay. Fortunately, more cars also mean that your business will be booming – hopefully. So you can expect to be able to pay for the extra cars.
The best course of action here is to establish a number of vehicles you can lease safely without losing money, even if business is not as good as expected. That buffer can then be raised by leasing more cars once you are sure that your bottom line will no longer go below a certain amount.
Commercial fleet maintenance might not be something you have to worry about paying for. Since you already pay a lease on your fleet of vehicles, it’s not uncommon that you can get a deal that says the leasing company will be the one to pay for maintenance. However, these regulations are not always clear cut, and if you don’t keep up with maintenance checks and important maintenance tasks, then the company might end up charging you extra.
Keeping up with fleet maintenance is of primary importance, not just to avoid paying more, but also to avoid the damage and mechanical difficulties that avoiding maintenance can bring. For example, the car can get severely damaged if you don’t change its oil in time or if you ignore a small problem that could get bigger over time.
Battery checks, AC filter changes, checking the electric system – all these important tasks have to be accounted for as early as possible.
According to Denver Colorado fleet maintenance vehicle leasing companies, the best course of action is to use preventive maintenance tactics. Even if the car in question could still run for a long time on the oil it has, it’s important to top it off before the level drops below critical. Also, taking care of smaller malfunctions and maintenance problems is important in order to avoid the ones that can really get you in trouble.
Are you interested in leasing commercial cars? Maybe you have a new business that provides services that require your drivers to be sent to remote areas quite often. Depending on the demands of your business, leasing an entire fleet of cars might also be on the agenda. But how will that truly benefit you in the long run, and how much money can you really save?
Leasing cars from a professional cost effective commercial fleet financing company will save you a lot of trouble from the start. You won’t have to take care of any of the repairs – as you would, if you had purchased your own fleet of vehicles – and if a car breaks down, you can have it replaced without much fuss. It’s very easy to calculate how much money it would cost you to buy your cars, perform all the repairs yourself and purchase new ones when they break down. If you compare the total amount with how much you’d pay to lease commercial cars over that period, you’ll find it’s much more convenient and affordable to lease.
Of course, there are still potential pitfalls. For instance, if your driver damages the car, you might have to pay for it. However, when you consider your bottom line and how much profit leasing a fleet of high quality, brand new cars can bring you, that risk is worth taking.