Invariably, no matter how small your business, at some point you will need to travel or should you want to expand or improve your network connections (which most sensible business owners would), you will need to have transport of some kind.
Rather than having to deal with the stresses, expenditure and paperwork that come with buying the cars yourself, one option that many small business are turning to, is to lease their vehicles from an external source. This service is both financially beneficial and more straightforward for your business providing you use a reliable firm like Hitachi Capital Vehicle Solutions for instance. So what exactly are these benefits your company could realise?
One benefit is that you don’t have to pay tax on the vehicles up-front as you do when you’re buying them. Instead you can pay the taxes as part of the monthly lease payments which makes the cost more manageable – however this can be tax-deductible as well.
No Repair or Maintenance Costs
You can often secure yourself a deal where your car(s) are covered for the majority of the expenses you would typically expect when owning the vehicle(s). If it is part of your lease agreement you wouldn’t have to pay for any repair costs, MOT and Service costs and other costs for maintenance. Along with the fiscal benefits you can also get free peace of mind.
Cheaper in the Long Run
On top of these potential repair costs, it’s no secret that when you buy a car it immediately starts to decrease in value and unless you’re very fortunate, you’ll never recoup the amounts you’ve spent or make a profit. By having a leased car you don’t have to concern yourself about loss of value, as more often than not you can agree a deal to replace your vehicle after a certain period of years with another brand new one. Over a sustained period this can save your business a great deal of money.
Another potential advantage is that by having new and well maintained vehicles it can make your business appear more professional, and leave a good impression on your current and prospective clients. This could overtime secure you more profit as more customers use your services.
So if you are a small business owner, make sure you select the best choice for you and lease your cars. Treat it as an investment in your future, as the money you save by using this method you can invest in expanding your operations.