The Pros and Cons of Business Vehicle Leasing
When it comes to business, there are many reasons why a vehicle is required. Staff may need them to move between sites or offices. A pool of cars may be useful for driving to meet customers. Vans may be required for deliveries.
Regardless of the needs, there is no doubt that business vehicle leasing is a useful tool.
The following list of advantages and disadvantages are designed to help you decide if company leasing is for you.
Pros of Business Vehicle Leasing
- Accurate budgeting – Leasing a business vehicle will give you the ability to accurately identify your budgets as the monthly cost will always be the same.
- Advice and support – There is always help and guidance available from CVS Ltd should you have any queries.
- Reliability- Vehicles are new or nearly new which means that they will have zero or low mileage which means that they are reliable.
- Fuel Economy – Choosing a new company vehicle that has excellent fuel economy will ensure that you keep business costs down.
- Cost Offsetting – The leasing cost can be offset against the profits of the business.
- Road tax – The Vehicle Excise duty is provided for the entire length of the contract, again reducing outgoings.
- Get a new vehicle at the end – If at the end of the agreement you decide that you want to continue leasing then you can simply hand the vehicle back and have an upgrade.
- Branding – Business vehicle leasing allows you to have your vehicle branded.
- Tailored Agreement – We are able to create a business vehicle lease that works with your business budget.
- Mileage – We offer a high mileage as standard, but we can tailor it to suit your business.
- Technology – The newer the business vehicle the better the technology, no business should see staff talking on mobile phones whilst driving and most of the latest vehicles whether they are cars or vans have Bluetooth. Many vans come with a place to use your laptops easily, as more vans are doubling up as mobile offices.
- Delivery – If you are located within 25 miles of CVS Ltd its free delivery. For a fee with can deliver throughout the UK, or you can collect your lease vehicle.
- No Credit History – We accept new companies who do not have a credit history.
- Bad Credit – We do not look at credit scores when looking at business vehicle leasing applications.
Cons of Business Vehicle Leasing
- Terminating the contract – While you may have had the intentions of sticking the contract for the agreed duration, sometimes, circumstances change which can mean that you need to terminate the contract which will come at a cost depending how far into the leasing contract you are.
- Mileage allowance – While this can work for many, if you do more miles than agreed there will be an excess mileage charge per every mile you have covered above what is agreed in the contract.
- Vehicle condition – The contract will come with a Fair Wear and Tear Guide and so you will be expected to ensure that the vehicle is returned in good condition. Failing to do so will result in a charge.
- The vehicle will never be yours- This is why more companies lease vehicles but its not for everyone.
The Advantages of Business Leasing Outweigh the Disadvantages
Business vehicle leasing is convenient and simple while ensuring that business owners know exactly what their budgets are.
They provide a level of protection when it comes to reliability and because the agreement is fixed for an agreed period they know exactly when they will have to consider looking to extend their agreement.
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