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Quite often, company managers end up confused when it comes to the question of buying or leasing a vehicle fleet. The truth is that there are many pros and cons to both sides of the issue, so leta��s get into the discussion right away. One of the biggest benefits of leasing a vehicle fleet is that the cash upfront required is quite less compared to what is required for what is purchasing the vehicles. Hence, many companies opt for leasing vehicles since it reduces fleet costs and frees up cash that can be diverted towards business use. The benefit is that there is cash on hand that can be reinvested in the company and can be used to grow the core business.
It is advisable to go in for the right type of lease depending upon your business circumstances. Generally, out of the two types of leases available a�� the open ended lease and the close ended lease, companies choose the former because of the extra flexibility that this provides. Leasing also allows companies to save on admin related costs. This is in contrast to the companies that own the fleet, which are responsible for a range of administrative costs and expenses such as taxes and license renewals. A�Conversely, when a lease is undertaken, it is the task of the leasing provider who provides the paper work, record keeping, fleet management, and other tasks.
At the same time, fleet leasing providers also take up the responsibility for the entire maintenance of vehicles. In most cases, this also includes roadside assistance. The programs cost the owner a flat monthly fee, so the costs can be easily met. Moreover, most leased vehicles are almost new; they provide lesser maintenance issues than others and lesser downtime comparatively. A�A number of fleet managers for leased fleets have access to sophisticated software and programs to calculate incurring costs and how to reign in expenses. These programs are capable of monitoring expenses more closely, leading to better capital utilization.
Leasing vehicles can prove to be beneficial too when it comes to taxes. At the same time, better vehicles and a smart fleet improve your corporate image to a great extent. Make sure that your fleet does not have vehicles of varying age or quality, or that could throw a wrong message to your clientele.Google+
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