Company Vehicle leasing the pros out way the cons.When it comes to business, there are many reasons why a vehicle is required. Staff may need then to move between sites or offices while a pool of cars may be useful for driving to meetings along with vans for product deliveries or delivering a service. Regardless of the needs, there is no doubt that company 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.Advantages of company vehicle leasing.Accurate budgeting – Leasing a company vehicle will give you the ability to accurately identify your budgets as the monthly cost will always be the same.
Personal car leasing advantagesYears ago, obtaining a car was a fairly simple affair. You got your dad to give you a few driving lessons, then you went with a professional instructor to iron out the mistakes, then you passed your test. Then you bought your first car. It was usually an old banger bought for a few hundred pounds and although you were proud of it you would soon grow tired of it breaking down.Well now there is a different way. Leave behind the old banger's and start dreaming of a brand new model. Personal car leasing is the way forward and is the most popular method chosen by people who want to get into a new car. But for those who are unsure of what personal car leasing is and whether it could be right for you here is some information to help make up your mind.Personal car l [...]
One of a company’s largest expenses can be vehicles. Whether a sole trader with a “white van” or a larger business that operates a fleet of vehicles you need to know what your options are and the most cost effective way of operating company vehicles.
Traditionally many companies bought their vehicles and kept them for a certain amount time before renewing them. More recently businesses have turned to contract lease hire as an alternative to owning the vehicles. But what is the difference for companies?
Off Balance Sheet Financing
Leasing vehicles is referred to as “off balance sheet financing”- this means the vehicles are not shown on a company’s balance sheet as either an asset or liability as they would be if purchased with a loan. By keeping vehicles and other equipment off the balance sheet it reduces the debt burden of that company. Businesses only have a certain amount of credit available to them.