Is Van Leasing More Attractive Than Buying?
Any business strives for cost reductions where possible, however unnecessary expenditure is still a common ailment of many companies. The realisation that your business has been paying over the odds for an aging fleet that has extortionate maintenance commitments can be unsettling. However van leasing as a business service has never looked so attractive.
The foremost benefit of van leasing is the low cost of acquiring new vehicles. In comparison to the option of hire purchase, van leasing allows for a cost that is spread out over two to four years, with no need for a significant deposit to be found up front. Additionally, because there are no costs to be recovered at the end of the term, a company is free from the worry of an ever decreasing vehicle value.
Avoid ever being off the road
The foremost benefit of van leasing is that a company is guaranteed to have a vehicle for the duration of the agreement term. If a van currently being leased needs repair work, then the responsibility is solely on the lease firm to not only get it fixed, but also to provide a replacement vehicle.
Present a professional appearance
By leasing a fleet of vans any company can benefit from the more professional appearance they provide as compared to an ever aging fleet. The longest lease term available is five years, and as such the oldest vehicle within a company’s fleet is will be no older than this.
A company that shows it cares about the way in which it is presented is also a company that is concerned about customer opinion. This ethos has been time and again found in companies that provide good services and products. The importance then of operating a fleet free from rust, and in good working order, cannot be overestimated.
Furthermore, companies are able to change their fleet vehicles to newer, improved models, without the associated high costs. Such an advantage is important in maintaining a company’s image.
Maximise cash flow
It is a much touted notion that equity within any vehicle is ‘dead money’ to a company. Van leasing allows a company to put to more effective use, the liquid cash within their business. Whilst in previous times companies opted to buy pieces of machinery and vehicles outright, with no on-going costs, the current thinking is to keep ‘dead money’ to a minimum. The current financial crisis has only served to emphasise the importance of this notion.
The important of brand identity
Companies rightly value the importance of an effective brand, and nothing creates a more professional image (or a better marketing opportunity) than a fleet of vans that sport peel off company details.
In summary, there are many benefits for a company that opts to lease their vans. From a professional appearance to the day to day practicality it provides, van leasing has never looked so attractive. The current financial climate has served only to reinforce the financial benefits of van leasing, as companies increasingly look towards the reduction of ‘dead money’.
