In the recent days, many companies are becoming increasingly interested in leasing cars; this has been because of several reasons. These reasons influence the choice for the company to lease a car instead of buying one. These reasons are:
1. The duration of use
In some situations, the company does not intend to use the vehicle for a long time. There are many reasons for this. It can be because the company is one that requires to maintain a certain image and as a result of this, they have to get the latest models of cars as they arrive. Another scenario is one where the purpose for which they sought to acquire the vehicle is a short-term one. This means that once the period for this venture has elapsed, the company will not need the car anymore. In such cases, it is probably a good idea to lease the car so that it can be disposes as soon they finish with it.
2. Reduced cost
Another benefit that can encourage a company to lease a car is the reduced cost. It is generally cheaper to lease a car than to rent it. This means that leasing will have a smaller impact on the cash flow in the organization that buying a car. If the company decides that they would like to purchase the car at the end of the lease period, then one advantage is that the lease company can be able to offer the company the opportunity to buy the car at a discounted price. This means that the company can be able to experience using the car for a long time before deciding to purchase it.
Another reason why some companies prefer to lease a car is the millage that they intend to accumulate on the car. If the millage is large, then the company may choose to lease. The company that wishes to get a leased car because of this reason should take caution. This is because there are cases where the lease company puts a limit on the millage that the car can accumulate. They should therefore ensure that they read the fine print so that they can establish this.
4. Easier fleet management
In the case where the company has a fleet of vehicles, leasing would be more beneficial because there are lease companies that offer maintenance for that car, insurance management repair in the case of accidents and even regular services. In the case of the company that has a fleet of vehicles, obtaining a car from a lease company that offers all these services would mean that there are fewer responsibilities for the company and therefore they can be able to manage the fleet of vehicles with less effort and therefore they are more effectively.
There are also many other advantages that have led the companies to have an increased interest in leasing and even preferring this to purchasing a car. These should all be considered before the company makes a decision on whether to buy or to lease.
This guest post was written by Katie. She works for a company car leasing business Tafft.com. Katie likes writing about business, cars and spends a lot of time on facebook.