Many businesses need company cars. You need your staff to be able to travel to meetings, to conventions and conferences, and all the other sorts of events required for your business to succeed. You can ask them to drive themselves, but that can accrue heavy expenses and doesn’t boost your brand. Whereas having company cars emblazoned with your business’s logo and colours makes a real statement.
There are a few different ways of acquiring these vehicles, but car leasing is fast becoming the most popular option. If you are looking for the best way of acquiring company cars, we suggest you go down the business car leasing route.
Mileage & depreciation
Cars lose value fast. When you drive cars out of the showroom for the very first time, they lose a huge chunk of their value, in some cases up to 50% straight away. As a business, if you purchase the cars outright or through a finance option, you have lost money immediately.
That depreciation will only continue the more miles you and your staff put on those cars. Cars used for business use accrue huge amounts of mileage and that decreases the value of the car. The more miles travelled, the less the car will be worth and that means when you come to selling the car, you will lose out.
With car leasing, you don’t have to worry about that. You simply hand the cars back at the end of the agreement and no longer need to worry about depreciation. Leave that to the leasing company to worry about.
Saving money on those monthly budgets
When it comes to financing a car, you either pay a series of monthly payments that pay off the entire value of the car to take ownership, which means the payments are quite high or you pay monthly payments and then have to pay a balloon payment at the end to take ownership of the car.
These seem like excessively expensive for businesses. Car leasing simply includes an initial deposit and lower monthly payments allowing you to save money on your monthly budgets. Because car leasing payments cover the cost of the depreciation of the car rather than the value of the vehicle, they are lower than finance agreements.
Now as a business, this gives you more options with what to do with your budgets. You can either stick to an easily affordable car and save money on your budgets or you can take the step of stretching your budget to lease more premium models that you wouldn’t have been able to afford through car finance.
Getting those brand new cars
Business Contract Hire agreements (the purest form of car leasing) offer businesses the chance to get brand new cars for a far cheaper rate than they would on car finance for the reason already mentioned. If you have been watching the likes of Top Gear and the Grand Tour or reading one of the many motoring magazines and you have had your eye on a certain new car, car leasing is the cheap, affordable way of getting it.
Brand new cars always attract attention on the roads because the public has never seen them before. They attract looks and comments, so if you want a brand new car emblazoned with your business logo for an affordable amount, business car leasing is the way to go.