Drive Your Fleet Forward | Wilmar, Inc.

Why Car Leasing Is Good for Businesses

Written by Wilmar, Inc. | 6/4/19 3:03 PM

When you think of transportation for your business, you probably imagine the responsibilities and expense involved with purchasing new cars. Or perhaps worse, your finances will only allow you to face the gamble of searching for quality used vehicles to meet your needs. There is another option to consider.

Leasing the vehicles you need for your business can offer many advantages you're probably unaware of.   No matter what type of industry you're involved in, leasing a fleet of vehicles can offer reduced costs, additional resources, and expert advice.

How to Lease a Fleet of Business Vehicles

You may not think your business is large enough to worry about anything defined as a fleet. The size of your business isn't important. Whether you begin with 2 cars or 200, your business will be prepared with the vehicles to provide the quality services your customers expect.

There are many dealerships and rental businesses available to help you rent or lease a personal car. When you're searching for cars for your business, it's best to work with a company that specializes in fleet leasing.

Before you jump into a lease, it's important to consider all of your options. When you understand all of the facts surrounding your business needs and the leasing process, you will be able to make the best choice for your company. Follow these steps to make sure you're making the best choice for your company.

  • Step #1: Do your research. Before you make your decision about a company car, you need to evaluate how it will be used. Consider how long you plan to own the car, the number of miles you drive, and the types of terrain you'll navigate.
  • Step #2: Compare your options. Not every company will offer the same prices and options for company vehicles. Shop online to compare your needs and budget and find the best match.
  • Step #3: Understand the costs. Leasing can offer a way to obtain company vehicles at a lower monthly cost. However, the details involved in a lease agreement can be complicated. It's important to understand the full cost of the lease, how much the car will be worth at the end of your lease, and the interest rate of your lease.
  • Step #4: Determine the terms of your lease. After you've chosen a vehicle and worked a payment you're comfortable with, you need to figure out what you need from your lease agreement. These decisions will help you decide how to take care of damages or excess mileage through the course of the lease.

Advantages of Leasing for Businesses

Leasing is ideal for business purposes for a variety of reasons. While buying a personal vehicle is often the way to go, company cars often suffer wear and tear that is completely out of your control.

Company cars may have a variety of drivers, often travel unexpected terrain, and gain a lot of mileage. Leasing for your business can offer you the following benefits to counteract the expenses of providing company cars. 

Versatility

Your business is always changing. Leasing offers the opportunity to add or remove vehicles from your fleet as your business grows or changes. Since you don't always know what the future holds, a company vehicle seems like a major commitment. Leasing allows you to meet your needs and change them when necessary. 

Lower Costs

Monthly lease payments are often lower than regular payments required with a full vehicle purchase. When you lease a car, you only pay for the portion of the car that you use. Since the total is lower, the monthly payment can be reduced. Additionally, sales tax and interest rates are lower since they only apply to the monthly payment.

Vehicle turnover can get costly when you purchase every vehicle your business requires. If you decide you need to upgrade or change one of your vehicles, selling the current vehicle might not bring the value you hoped.

In the business of car sales, depreciation is the term used to describe the value a car loses when it's no longer a brand new vehicle. If you purchase a company car only to realize a few months later you really needed a truck, selling your new car will likely lead to a disappointing profit.

Replacing one purchased vehicle could lead to a costly loss for your business, especially if you're still paying off the loan. 

Regular Service

Vehicle maintenance is costly and repairs are even worse. If you purchase the vehicles for your company, it's important to consider the monthly costs of keeping these vehicles maintained.

It's not unusual for company cars to rack up a lot of miles while traveling from one job to the next. This extra mileage requires you to take the car in for routine maintenance more often. 

When you lease your business vehicles, you will likely have the opportunity to include a maintenance program that covers maintenance and repairs. A leasing maintenance program will often have choices related to the use of the vehicle and how many miles you regularly drive. When the cost is built into your monthly payments, you can avoid unexpected repair costs.

Professionalism

Leasing a vehicle offers you the opportunity to upgrade frequently. Today's technology ensures that vehicle manufacturers are always adding new safety and convenience features. These features help your employees stay safe and offer the best services for your customers. Having the opportunity to upgrade to the polished professional vehicle that best meets your company's needs inspires confidence from your customers.

When you lease your company vehicles from a fleet management service, you can get advice from professionals that serve companies in every industry. If you're unsure about your company's needs, these experts can offer valuable advice about vehicle types and the lease that will fit your needs and budget.

If you're spending time worrying about the vehicles you need to keep your business running, you're not running your business. Leasing a fleet of vehicles can give you the opportunity to enjoy individualized service that meets the specific needs of your company. For more information about the best leasing options for your business, contact us today.