Smaller businesses and large established companies have taken advantage of the financial benefits of leasing cars for business purposes rather than buying, and the growing trend from 2013 has been shown to continue for 2014. Much like renting, leasing tends to be a based on a 2-year contract that transpires to be substantially cheaper both in the long and short term.
Upon consultation, Tilsun Group Leasing told The Epoch Times “With the recession buckling and the the green shoot of recovery happening business is bouncing back but business owners are looking at all aspect to save money and keep cash flow up car leasing is ideal for this purpose and that is what is given to the continued rise”.
As soon as a car leaves the forecourt its value begins to depreciate by thousands. Cars lose 20 to 40 per cent of their value every year. By leasing, usually for a period of two to four years, the falling value of the vehicle is the concern of the company you are hiring from. An increasing number of businesses are taking advantage if competitive rates offered by Rental and Leasing companies. By leasing a car you are paying for a high standard product with regular set payments, allowing you to budget accordingly without the initial outlay and concern of the inevitable financial losses of ownership.
Monthly rental rates are cheaper than monthly finance repayments, by as much as 55%, and the deposit required is likely to be small, often the equivalent of three monthly payments. Hired cars are likely to be under warranty for the duration of a rental period, so vehicle repairs will usually be covered by the leasing company. In the case of repairs/maintenance needing to be undertaken most will offer a replacement vehicle. The ever-increasing demand for leased vehicles means that hundreds of rental companies are competing to offer the highest quality vehicles at fantastic rates and flexible contracts to meet the needs of the customer.
Vehicle hire and leasing services offer a wide range of choice to customers, allowing them to find the most affordable and suitable transport to meet their business needs. Businesses often find that they are able to have the use of a car that would otherwise be unaffordable to buy outright. It is possible to hire a fleet of cars as there are many companies who are catering to larger business needs. As well having a selection of the latest models to chose from, newer car designs tend to be more economically viable in terms of fuel costs and more environmentally friendly.
Smart business owners have also cottoned on to the fact that vehicle expenses are tax deductable and are taking advantage of the ability to write off a percentage of costs from the leasing of vehicles for business purposes, including hiring fees, maintenance, fuel expenses, and travelling time depending on the nature of the business.
This increasing trend to lease rather than buys vehicles means that there are now a multitude of companies prepared to offer businesses competitive prices, with the option to purchase exchange for a newer model at the end of the contract if they wish.