Van Leasing Supports Financial Planning
Van and car leasing is currently helping many businesses to weather the current economic crisis. Many businesses have been forced to look carefully at their cash flow and capital expenditure. Commercial vehicle leasing provides businesses with an effective way to ensure that they have the transport they need with fixed, known monthly repayments.
Van leasing and contract hire have become increasingly popular as businesses recognize the benefits of leasing over outright purchase. A few of these advantages are:
- Fixed, known monthly payments enabling businesses to accurately forecast their finances;
- Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
- Maintenance and servicing can be included in the lease price which can save a lot of headaches;
- Leasing is a great way to lessen the impact of depreciation;
- The leasing company can often provide commercial vehicle insurance at very competitive rates;
- No problems disposing of vehicles at the end of the lease period;
- There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.
Although van leasing is generally advantageous to businesses there are some additional considerations that should be borne in mind. One thing you may need to do is accurately estimate your anticipated mileage. Some contracts impose penalties if the anticipated mileage is exceeded but there are contracts that provided unlimited mileage.
Another important aspect of the contract to consider is exactly what is included in the maintenance agreement. Some lease contracts include replacement tires and even replacement windscreens, but always check the details.
Always gather several quotations when shopping around for a good van leasing contract and compare them in detail. Always be certain that you are comparing the exact same vehicles with all of the same options.
Like company car leasing, van leasing is increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.
