A fleet of cars eases the operations of a company. It makes running errands less tiresome for its employees.
If you haven’t considered car financing for your business, you might want to start. Financing a vehicle fleet will improve the way your business functions. We explain what car leases are and the types you may want to consider.
Car Leases and Fleet Management
The fleet management process may be new to you, so you’ll need an introduction.
In short, it refers to the management of motor vehicles( cars, trucks, and vans) for a business. A business owner may manage a ‘grey fleet’ (private transport for business purposes). Fleet management extends to ships, aviation machinery, and rail cars.
It may include a host of functions such as car financing, maintenance, and telematics (tracking vehicles and diagnosing their problems).
Fleet management reduces costs for the owners of small businesses. Besides increasing productivity and efficiency, it also reduces costs. Business owners can hire an in-house fleet manager or seek the services of a fleet management provider. Of course, an owner will need car leases to finance them.
How Par Leasing’s Car Leases Will Benefit The Small Business Owner
A fleet of leased vehicles allows your staff to get on the roads quickly and perform their tasks efficiently. So, why are car leases better than purchased cars?
Every small business owner knows that securing the necessary capital to make purchases isn’t a small feat. Par Leasing provides a way for them to own vehicles if they don’t have all of it on hand.
Also, car leasing enables business owners to make cars available to their staff for a single monthly payment. They won’t have to pay massive amounts for vehicles up front, so they employees can get new cars quickly.
2. Develop Brand Image
A vehicle fleet allows you to establish your company’s brand. Each vehicle represents your business. Therefore, leasing a vehicle fleet from us lets you build the right image quickly.
3. No fuss over maintenance
Also, leased cars come with Manufacturer’s Warranties. You won’t have to worry about unnecessary repair costs if you secure a vehicle fleet from us.
Moreover, owning a car means that you’ll have to worry about depreciation. A vehicle loses value as soon as you drive it away from the sales office. You won’t have to consider this if you lease a vehicle fleet.
Types of Car Leases For Small Business Owners
When it comes to car leases, small business owners have endless choices. Par Leasing’s consultants will help you set up the right one for your business.
1. Commercial Hire Purchase
With a Commercial Hire Purchase, the financier will buy the vehicle and ‘hire’ the consumer to drive it over a period. Monthly payments usually suffice to pay the whole loan. The car goes to the motorist after he does so.
2. Finance Lease
The financier buys the vehicle in question and leases them to the driver without much capital outlay. This arrangement is suitable for small businesses because there is little if any, residual risk. Lessees can refinance the car after the lease ends.
3. Operating Lease
A financier will buy a car and rent it to the motorist. He is the rightful owner of the vehicle. The driver has the option to buy it over at the end of the lease.
4. Chattel Mortgage
A Chattel Mortgage involves a financier advancing money to a motorist to buy a vehicle. He then holds a mortgage over the car, which serves as security for the loan.
In all, car leases allow a small business to reduce operating costs and make its presence felt. Par Leasing provides suitable ones. Navigate to our contact page and get in touch with us today.