As a startup, one of your key considerations will be how to properly administer funds within your budget. Seeking to save money where possible will allow you to make the most of what you have in the bank. Leasing is one route you can take to avoid the high cost of newer vehicles. It provides a number of financial incentives that can provide your business with more financial stability.
Allow for More Cash Flow
Opting to lease a truck will ensure you have a lower monthly payment allowing you to allocate funds elsewhere within your business. In addition, leases usually require no down payment or a only a small sum. Instead of covering the full cost of the vehicle, you are paying for the decreasing value of the truck. If you need access to more cash, leasing is good way to cut down on your expenses.
Less Money Spent on Repairs
Usually when you lease a commercial vehicle, it comes with a warranty that covers the cost of repairs. If the truck starts to malfunction, you can get it fixed for no cost. Maintenance costs also usually fall under the lease agreement you sign. The only expense you will have to cover is regular oil changes and tire rotation. Another perk to leasing a vehicle is that you can return it if you notice it is not working as promised. If you choose to lease a vehicle, you can also save money by bypassing administrative work. The company leasing the truck will normally take care of paperwork and record keeping so you can have your staff concentrate their efforts elsewhere.
More Reliable Vehicles
Choosing to lease a truck is the most reliable avenue. You can expect that the vehicles will be well maintenanced and newer ensuring your business can run efficiently. You won’t have to worry about travel plans being deterred due to breakdowns. Businesses centered on making deliveries or meeting with clients need a guarantee that they have a reliable vehicle. Leasing a vehicle also gives you access to nicer vehicles that you would otherwise not be able to afford.
Vehicles Tailored to Business’ Needs
If your business requires large trucks to haul goods, the cost can often be overwhelming. Leasing is the most affordable option. Not only will you save money on the cost of the vehicle, you will also avoid incurring maintenance costs. An unexpected broken windshield repair bill, a new set of tires, or even worse, a transmission repair can leave you on the wrong end of a bill when you own the vehicles. When leasing though, those unexpected costs can be covered in many cases, saving you a lot of money and frustration in the process. This could prove beneficial as there is less of a chance that you will face unpredictable costs down the line.
Little Risk
Given that you will have the choice of the length of time you will lease a vehicle, the risk is minimal. Your business doesn’t have to commit for the long term so you can easily change your mind. In contrast, committing to purchasing a vehicle leaves little room to turn back. You can lease for a year to decide whether or not it is the best option for your business. It’s much easier to wait for a lease to expire than to put your car up for sale.
Financial Incentives
Other financial incentives accompany the decision to lease. You will only have to pay the sales tax on the monthly payments in most cases. If you chose to purchase a truck, you would be required to pay taxes on the total cost of the vehicle. Those who like driving trucks with advanced technology will want to opt for leasing. It’s the cheapest way to gain access to the newest editions of trucks. Leasing also allows you to be fully aware of the cost of ownership. If you purchase a car, the trade-in-value is subject to change as time passes. If you know you will avoid incurring additional costs in damages, you can accurately predict how much a vehicle will cost.
