Outsourcing Cars and Automobiles Through Car Leasing
Buying a vehicle or vehicles can be a real cost for business and fortunately there is an alternative that still offer benefits but cut out the negatives of purchasing a car – car leasing!
One of the largest factors for businesses purchasing a car is cost. Car leasing allows you to outsource both the large capital payment and also most of the other responsibilities of buying and owning a car.
Purchasing a car typically involves a large down payment or deposit of some kind or another. This is usually a quite large amount of money and for businesses that require a number of vehicles it can really be a significant cost. Car leasing often offsets this cost and replaces it with a monthly contract hire cost.
No Large Fees
When the lease is up there is also no need to pay a large fee to purchase the car outright. With contract hire businesses simply have finished their contract and can then replace their older vehicle for a new contract hire and all the perks.
The other benefit is that you are not paying to purchase the car as at the end of the contract it is the car leasing companies. This means you are often paying less for a month’s leasing than you would be for car repayments or on a medium term bank loan for an auto – another saving.
Unlike with a purchase, you won’t have a second hand car with substantial mileage to deal when finished. This asset will have depreciated and so selling it will often result in a loss, keeping it can mean costly expenditure and as the car will most likely be out of warranty repairs.
This is another area where car leasing comes to the fore. By outsourcing the car purchase and simply leasing it, you don’t have to worry about those expensive garage visits. The price of such repairs can exceed the hundreds of dollars and so is a real downside to ownership. Car leasing companies take the responsibility of this issue and you don’t have to worry about these often extortionate costs. They also will most likely provide you with a replacement vehicle for the interim period if there is an issue with a car or an auto.
Many governments offer tax breaks of all sorts for car leasing. This means you can often offset part or all of the cost of your car lease on taxation for the year. This means you can save a significant cut of tax for the year, making outsourcing your car usage a great idea. This can really be a very effective tax break for businesses with a number of vehicles.
Car leasing and outsourcing your car use is an excellent idea in terms of both function, usefulness and cost and can really be something to benefit your business.
Cormac Reynolds works for First Vehicle Leasing a UK car leasing contract hire company.