If you are starting your own business or even in a mature company, considering whether you should buy a new vehicle or lease one instead is a very common question. In order to help people more make a more informed decision, consider the 3 points below as to why leasing is increasingly become a more popular options amongst businesses and consumers.
1) Fixed Expenses Throughout
With prices fixed throughout the leasing period, you do not need to worry about additional maintenance or servicing costs. These factors would have been taken into consideration when determining the leasing price. This gives people the peace of mind and stability that they will not burst their cash flow or expenses when the vehicle breaks down.
Especially for individual consumers, this means that you do not need to worry about the fluctuation of interest rates and taking on additional loans as leasing only involves monthly payments.
2) Replacement Vehicles
In normal circumstances, when you own a vehicle and your vehicle breaks down, you will need to quickly search for a replacement vehicle so that you can quickly continue to carry out your deliveries. If you are unable to do so, this may drastically affect the business. Some businesses even resort to having another vehicle on standby and this involves a much higher capital expenditure.
With the leasing option, reputable companies are able to provide a replacement vehicle in the event that you are have problems with your rented vehicle. Even if your vehicles need to be sent for repairs or servicing, these replacement vehicles ensure that your operations can still continue.
3) No Heavy Capital Involved
Especially for start-ups where cash flow is tight, controlling your capital expenditure and monthly expenses is challenging. Leasing a vehicle reduces the need to pay a lump sum as down payment as compared to when you purchase the vehicle. This give growing businesses the room for further expansion as it frees up their cash flow.
All in all, you can see that even though leasing may be a more costly option, it does offer its benefits. Check out Rentalorry to find out more about the options available.