Making the right financial moves in the competitive marketplace can be critical to ongoing success. Opting for commercial fleet leasing in preference to purchasing vehicles for corporate use can offer significant financial and practical advantages for modern companies. Here are seven key benefits of leasing over purchasing when acquiring your commercial fleet vehicles.
Improved Cash Flow
Because commercial leasing arrangements require a smaller down payment, your company can retain more cash on hand to manage core business activities. By maintaining adequate operating capital, you can respond to business opportunities more easily and quickly. This can translate directly to improved market position for your company.
Commercial leases are generally available in two varieties:
- Open-ended leases are designed to provide maximum flexibility for the lessee and typically last for one year or more. At the conclusion of the lease term, the vehicle can typically be purchased, sold or leased on a month-to-month basis. This can allow you to upgrade your fleet as often as your budget allows. You may be on the hook for losses sustained upon the sale of the vehicle, however, making this a slightly riskier financial proposition for your company.
- Closed-end leases are slightly more expensive on a month-to-month basis but provide added protection against unexpected financial costs. Barring unreasonable wear and tear or mileage, you can turn in your fleet vehicle at the end of your closed-end lease and walk away with no further financial responsibility.
Most fleet leasing companies offer both types of arrangements and can tailor a solution specifically designed to meet your corporate needs.
Increased Management Support
Leasing your fleet through an established provider can also allow you to access a number of fleet management tools, including the following:
- Fuel expenditure records
- Mileage and location tracking
- Fleet maintenance reminders and recommendations
- Assistance with insurance claims and repair
This added help can boost productivity and enhance workflows in your corporate offices while ensuring that all elements of your fleet are operating at optimal levels.
Outsourcing Routine Administrative Tasks
Property taxes and license renewals are the responsibility of the vehicle owner. By leasing rather than buying fleet vehicles, you can transfer the responsibility for these ongoing tasks to the leasing company. This can save considerable time and stress on the part of your employees and can ensure that this paperwork is managed properly and in a timely fashion.
Improved Corporate Image
Maintaining newer fleet vehicles on the road can have a positive impact on public perceptions of your company. By putting your best foot forward with dependable and attractive fleet cars and trucks, you can provide real support for your branding efforts among the general public.
Greater Access to Vehicles
Commercial fleet leasing companies can acquire vehicles locally or from across the country to suit your corporate needs perfectly. This increased level of access can also lower your overall cost of leasing and can ensure that you receive the exact vehicles you want.
Reduced Impact on Your Financial Bottom Line
Leased vehicles are not generally regarded as corporate assets and need not be reported on the balance sheet as assets or debts. Instead, they fall roughly into the category of business expenses. This treatment of leasing vs. purchasing can have a real impact on your company’s prospects in the investment marketplace.
At Glesby Marks, we specialize in expert fleet leasing and management services for your company, including vehicle acquisition and leasing services, upfitting for fleet vehicles, maintenance and management tools and a wide range of added services designed to help you stay on the road in style. Give us a call at 800-482-9498 to speak with one of our friendly customer service professionals and to learn more about how our comprehensive lineup of fleet management services can contribute to your corporate success.