Car leasing benefits for every new business
Every business, whether large or small, operates with the main focus on cutting down unnecessary expenses and deriving as much profit as possible. All businesses want to avoid huge down payments and the risk of possessions like cars, that lose value over time.
Every business, whether large or small, operates with the main focus on cutting down unnecessary expenses and deriving as much profit as possible. All businesses want to avoid huge down payments and the risk of possessions like cars, that lose value over time.
In this business reality, SMBs and MNCs alike are warming up to the trend of leasing rather than buying vehicles. Business car leasing is now, the new normal in India.
Here are 5 benefits of corporate car leasing for any business, old or new, big or small:
- No down payment
Most car leasing companies in India don’t demand any security deposit nor a down payment from businesses they work with. Corporates only pay for the usage of the cars during the lease period, while the car leasing companies take the entire responsibility for the depreciation cost and the resale value of the cars.
- No nasty surprises
With a corporate car lease, companies know exactly what they are paying for and they can precisely plan their budget ahead for the whole duration of the lease contracts. No nasty surprises - each monthly rental is fixed, with a determined mileage and duration to respect, and the insurance is included. The corporate can decide to add extra services to its contract, such as maintenance and a relief car in case of an accident. Car leasing companies will thus, include those costs in the monthly rentals, in full transparency. Fleet management has never been this easy!
- Tax deductible
Under a company car lease program, a corporate pays a fixed monthly rental, and eventually the fuel costs. This monthly rental paid to the car leasing company is tax deductible for the corporate, and this is the real sweet spot in a corporate car lease. Less taxes = more money to invest in business activities!
- Upgrade option available
Every 2 to 5 years, once the lease contract comes to an end, the corporate has the opportunity to lease a brand new car from the leasing company. Today, not many businesses want to be stuck with the same vehicles, for way too long.
- Value-added benefits for employees
Your employees will be able to use the leased car for both professional as well as personal purposes, depending of course, on each employer’s vehicle usage policy. They won’t have to take care of anything; the monthly car rental is directly deducted from their salary and the extra services are taken care of by the car leasing company. All they have to do, is to focus on their daily work.
To sum up, corporates opting for business car leasing are completely free to use their leased cars the way they want, with tailor-made contracts fitting all their needs and requirements. They can enjoy vehicles in perfect condition for the entire contract duration, which give them a modern and professional image. And at the end of the tenure, resale is not their concern. Instead, they have the opportunity to change the vehicles regularly - new model, new size, new technology, and so on...
By opting for business car leasing, corporates can efficiently outsource their fleet management, and by doing so, save time and money in order to focus on their real core business.