3 Reasons why leasing is wrongly undervalued

cafe-691956_640Despite remaining on the fringes of the consumer and commercial mainstream, leasing remains a genuinely viable option for business-owners who are looking to build and maintain a commercial fleet of vehicles. Not only has leasing diversified the automotive sector and created new revenue streams for providers, for example, but also affords flexibility to business-owners and enables them to develop a commercial fleet that suits their financial budget.

3 Reasons why Leasing is Wrongly Undervalued

So why exactly does leasing remain so criminally underrated in 2015? Here are some of the reasons behind this: –

The ownership of assets is considered to be positive within a Business

Traditionally, business model were built on the principle that commercial assets equated to value. While this remain true in principle, we have seen huge changes in the financial and economic landscape over the course of the last two decades and these have given rise to more creative business models for the modern age. Many of these are focused on maximising long-term savings, and leasing is ideally suited to this philosophy as third-party vendors assume the cost of maintaining and upgrading your vehicles.

Also, cars and vans are depreciating assets and actually cost your business money the longer they are kept on the road.

Leasing Vehicles is thought to be more expensive than buying them outright

While it is cheaper to procure a second hand van for cash than commit to monthly lease repayments over the course of a two or three year contract, it is important to consider long-term financial gains. Second hand vehicles are more likely to breakdown and require costly repairs, for example, forcing you to experience considerable downtime as you assume the cost of unplanned maintenance. These costs can quickly accumulate, especially alongside the depreciating value of your van.

In contrast, service providers such as Lease Van offer competitive rates and comprehensive coverage, meaning that you are likely to save money in the long-term.

Businesses do not understand the core Benefits of Leasing

This is arguably the easiest obstacle to overcome, but despite this many business-owners remain ignorant of the core benefits associated with leasing. Many may be deterred by the need to make a regular monthly repayment for one or multiple vehicles, but it is important to understand exactly what this entails before making an informed decision. All leasing contracts make allowance for planned and unplanned maintenance, for example, while there is also a condition that allows you to upgrade your vehicles after a specific period of time has elapsed.

When you consider the benefits that are included in the typical leasing package, it becomes a much more viable and lucrative option for commercial fleet owners.

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