How Your Business Can Truly Benefit from a Contract Hire Deal
Many small and medium-sized enterprises are increasingly choosing vehicle leasing over vehicle buying, and it makes complete sense. Leasing a vehicle – or a fleet of them – comes with very distinct advantages, and it’s a cost-effect alternative to buying since you don’t have to come up with a big initial deposit, and you don’t have to deal with depreciation. This is particularly lucrative if you need an entire fleet and not just one or two vehicles. Of course, the vehicles will never be yours, but that’s the beauty of such an arrangement: you don’t have to be responsible for the vehicles once they get old or start breaking down, and you don’t have to deal with the tiring prospect of selling them, either. But how else can your business truly benefit from a contract hire deal? Here’s what you should know.
- Avoid the problem of depreciation and benefit from a fixed expense
You may already know how annoying depreciation is – if you’ve got a car for personal use, you are fully aware of it. But depreciation is entirely unavoidable, and it happens as soon as the vehicle is driven off the lot. Here’s an aspect about contract hire and leasing that makes it a viable option for many businesses: if you have a tight cash flow and cannot afford to pay for loans or overdrafts just for vehicles, you can take advantage of leasing because you don’t have to have a hefty initial deposit for funding your company vehicles. You only have to deal with a fixed expense per month, and once your contract ends, you can have the vehicle collected. It’s as simple as that.
- You can have a better flow of cash
Some businesses are strapped for actual cash, and it can be an issue dealing with cash flow and making sure you have enough of it for unexpected expenses or emergencies. For example, if you have to buy a car or van, this eats into your business’ capital. But not so with vehicle leasing, because the money you save can help you invest in other things and help your business grow. Furthermore, the money you save can go towards establishing a more robust cash flow, which is the lifeblood of any business.
Contract hire and leasing makes complete sense because what business wants to spend its hard-earned money on an asset that will depreciate when you can use the money to help your business expand?
- The chance to have new vehicles with great discounts
There are indeed a lot of vehicle leasing deals around, and all you have to do is take your pick (with careful thought and assessment, of course). But the fact is, with contract hire, you can shop around for the most lucrative deals on some of the newest and best models out there. Many providers are also keen to offer discounts if you choose an entire fleet, and you have the chance to use new vehicles with the latest and safest features whilst also impressing your clients.
Your staff can make use of the best new cars, and these newer models will also have enhanced fuel economy, allowing you to save more on fuel. Best of all, with vehicle leasing, you can reclaim VAT for your business – and it’s a good deal from any perspective indeed.