http://www.thelagoodtimes.com/commercial-back/
Vehicle Leasing Saving Business in Recession
A lot of businesses have grown used to providing their transport needs by purchasing cars and vans from local dealers. Local garages and businesses are often favoured because they are in the right place to provide timely servicing and maintenance. 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 current economic gloom is making many businesses rethink the way in which they finance their transport needs.
Business accountants want to cut transportation costs, but this must be achieved without risking profitability. Lots or businesses are rethinking the provision of company cars. Instead of providing their executives and sales people with their own dedicated company car, bought from the local dealer, many are turning to company car leasing arrangements. Some are choosing to use a car pool of leased automobiles that can be used by any member of staff who needs a vehicle.
It is estimated that as much as 20 to 60% can be saved by leasing rather than purchasing vehicles for business.
The leasing approach has been taken by many companies who rely on their commercial vehicles and vans. Leasing vans and trucks is not new to business but was previously primarily used by larger organizations. The current recession has led to many small and medium size enterprises opting to lease their commercial vehicles rather than buy them outright.
Automobile leasing provides a number of advantages over outright purchase which are all particularly good for businesses weathering the current economic decline. The initial outlay is minimal, there are some useful tax advantages and the fixed, regular monthly payments can help with budgets.
A key disadvantage for many businesses is that they never actually own the vehicles which remain the property of the leasing company. A potentially significant disadvantage is the requirement to stipulate the anticipated annual mileage when the contract is agreed.
If you are responsible for the transportation in your business, whatever your size, you would do well to research the potential benefits of vehicle leasing over outright purchase.
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