Business Car Leasing: the Advantages
Business car lease has gained popularity over the years. This provides many benefits and is advantageous to the corporate company. When considering whether to buy or lease a car for business there are many factors to consider. Business car leasing has proven to be beneficial to many companies. Let’s see how it works and its advantages.
Car leasing explained and advantages
Buying a car entails a loan instalment that is high and has to be paid even if the value of the car decreases. Whereas, leasing a car guarantees a lesser monthly instalment. Leasing a car has many tax benefits with respect to VAT etc. the initial down payment is comparatively very less for a leased car versus a purchased car.
Business car leasing gives you extra advantages when you sign up for the maintenance of the car at the time of contract. And it saves extra efforts spent on keeping a track of the maintenance and the functionality of the car. Owning the car will need a clear vigilance on the way it is maintained by the employee who is using the car.
Leasing cars gives the corporate company the advantage of enjoying a premium car for less when compared to having to buying the same car. And while getting a car on lease you can opt for ones with the latest technology and depending on the contract signed the car can be exchanged with same value cars in case the user faces some issue with the car he took on lease. The leasing company is liable for the cars that they provide atleast for the initial days. When a car is bought and there is some fault in the car there is a long process that needs to be followed for getting the car replaced but in case of leasing, the replacement happens much faster.
There is no risk to the company that is opting for leasing the car and all the risk is borne by the company that gives the car on lease. At the end of the contract if the company feels that the value of the car sold at that stage is very less they can opt to buy the car at that time.
Extra mileage can be bought if needed on a monthly basis rather than paying every month so the cost to the company during the non-usage months is comparatively less and maintenance costs are not there. Car leasing contracts can be customized and revised as and when required with mutual understanding between both the parties involved.
Considering all these points, leasing gives financial benefits to many organizations which require vehicles for commute but are not ready for the upfront cash down payments and the enormous instalments.