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Most companies find that vehicle leasing or van leasing has many different economic advantages. It makes sense therefore for those businesses struggling financially to consider how vehicle leasing could save them money. Vehicle leasing involves gaining access to brand new state of the art vehicles or vans at a monthly rate, which works out far less than the equivalent monthly rate for vehicle finance. This monthly fee can sometimes be reduced even further on condition that a larger final, or ‘balloon’, payment is made at the end of the agreement. In addition, unlike some finance deals, vehicle leasing has no requirement for security, hefty down-payments, or the ability to show a healthy set of business accounts.
What’s more, because the vehicles are new and benefit from a complete manufacturer’s guarantee, there are far fewer maintenance costs to worry about. Furthermore, certain leasing agreements will allow VAT-registered businesses to reclaim at least 50% of the VAT on each lease payment. Van or vehicle leasing can also be set so as to appear on a business’s balance sheet as an asset, consequently helping to make the business appear more attractive to potential creditors and investors, and possibly attract more favourable finance or investment terms.
It is also worth mentioning that for those businesses struggling to offload older vehicles, many vehicle leasing firms will often take such vehicles as part exchange towards the payment of a fresh new vehicle lease. Drivers who are conscious of their environmental responsibilities know it is within their power to make important differences through their choice of vehicle. The more shrewd have come to realise that vehicle leasing further increases this flexibility of choice.
Car leasing is based on paying a regular monthly payment over a set period, in return for exclusive access to a vehicle of one’s choice. Taking out a car lease is outstandingly popular amongst those looking to drive more expensive, up-market vehicles, but who do not have sufficient funds or the means to subsidise a long-term finance agreement. The reason that monthly lease payments are so affordable is that they are largely based on the depreciation over the lease period, rather than on the total purchase price. For a more expensive car that holds its value better than the average vehicle, depreciation rates will be lower, leading in turn to even lower month-to-month lease payments.
The environmentally-conscious driver will therefore be able to obtain a more fuel efficient car, or perhaps a hybrid vehicle, at an affordable rate, regardless of the car’s purchase price. The driver will in addition have complete freedom of choice over vehicle brand, model and any accessories, with no restrictions or limits being imposed. Car leasing will also allow the vehicle to be changed every three years or so, enabling the driver to take advantage of the most modern developments in environmental technology.
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Tags: vehicle leasing
Posted in Cars and Trucks · September 4th, 2010 · Comments (0)
Van leasing is seen as the judicious way for any business to secure essential transport. Firstly, ownership of a vehicle has little to commend itself, from a business point of view, unless it can clearly demonstrate a profitable return. In almost all cases, a vehicle is a depreciating asset, so the business owner always gets less back than what was originally put in. Ironically, certain van leasing options can actually help a business profit from vehicle ownership. With lease purchase, for example, the business buys the vehicle at the end of the lease term, at a price already agreed at the beginning. If that price turns out to be less than the prevailing market rate, the enterprise can then sell the vehicle at a profit.
Secondly, vehicle ownership will entail either a hefty full price payment, or a large fiscal deposit, to secure a purchase finance agreement. Either option will severely eat into valuable cash flow. With van leasing, on the other hand, a modest initial deposit – amounting to two or three monthly lease payments – is all that is required to assume control of a vehicle. Furthermore, with options such as a finance lease, all monthly costs can be kept low – provided the final ‘balloon’ payment makes up the difference. Finally, the low cost of leasing will often secure a better class of van for a business, than might be financially possible through vehicle purchasing.
For any business, the principles for car leasing should be the widest choice, the least expensive rates, and the most appropriate leasing plan. The best way to guarantee all three is to choose a large, independent vehicle leasing company. Some vehicle manufacturers may remain favoured suppliers across many industry sectors, whilst certain dealers may be known for offering a few workable alternatives. The first drawback in relying on such sources for vehicle leasing, however, is a lack of price flexibility, particularly where a business is small, and does not have sufficient bulk buying power to negotiate a better deal. An independent vehicle leasing company, on the other hand, will be able to source the best deals for all its customers. The second disadvantage is being saddled with a leasing arrangement that is more profitable for the manufacturer or dealer, but may not be the one that best suits a business’s tax needs, or cash-flow patterns. An independent car leasing company will always recommend the most tax-efficient – and financially practical – plans according to the unique legal and financial status of each client. Finally, there is no escaping the fact that an independent leasing company will always offer more vehicle choice. Furthermore, there will be no pressure, as is sometimes the case with dealers and manufacturers, to try and offload certain makes and models merely because they are in surplus.
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Tags: car leasing
Posted in Cars and Trucks · September 4th, 2010 · Comments (0)