10 Reasons Why it is More Profitable to Take a Car on Operational Leasing

Profitable to Take a Car on Operational Leasing: Is a company car a luxury or a necessity? In an accelerating world where time and freedom of movement are valued, a car is a must. If the company decides to organize its own fleet, what is more profitable – to buy cars on credit and maintain them at their own expense, or to take an already insured  car with full service for a long-term lease (this is operational leasing) and reduce the cost of maintaining the fleet?

Each business structure has its own needs for cars. The topic is especially relevant for courier services – one of the most popular and promising areas of business in the service sector. World experience shows that businessmen have been approaching this issue very pragmatically for a long time, preferring to get maximum convenience for minimal funds. 

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Moreover, leasing can be used to purchase both passenger cars and commercial vehicles (such as minibuses, light trucks and other vehicles in various configurations for a variety of business needs).

No. 1. 0% – down payment

A significant advantage compared to buying cars right away or on credit: you don’t have to divert the company’s funds from circulation or wait until the required amount is accumulated. Especially if you need not one car, but a whole fleet of vehicles. 

No. 2. Lease term – from 12 to 60 months

That is, from one to five years. It is quite an acceptable period to evaluate the advantages of this method of replenishing the fleet. And not only. During this time, you can understand how many cars the company really needs without acquiring extra equipment as a property. And leasing payments can be distributed for such a period for which these cars will be required.

No. 3. Big savings

If there is no goal to buy cars into ownership or you want to replace them with fresher ones in five years, then why overpay? And again, if you need several cars? In five years (or faster – depending on how long you sign the contract), you can refresh your fleet by leasing brand new cars and not engage in sales transactions.

No. 4. Monthly payment – fixed

This includes an operating lease agreement. Businessmen who are used to calculating all expenses in advance will not have to face surprises.

No. 5. A treaty with room for maneuver

After the end of the contract, you can buy a car at the market value of the car or take a new car according to the same scheme. And yet, it is possible to rent an unlimited number of cars or just one. It is important that you can choose any car that suits your business. 

No. 6. Speed ​​of clearance

The term for consideration of an application for operational leasing is from 3 to 5 days. So, you can quickly solve the issue of replenishing the fleet. And in business, the fastest one wins!

No. 7. Risks and service are not your headache

All risks associated with cars, the lessor takes on:

  • buying a car of the desired brand;
  • registration and registration;
  • payment of transport tax;
  • full insurance coverage;
  • full technical and service maintenance;
  • tire service (acquisition, replacement and storage of seasonal tires);
  • 24/7 technical support on the road.

No. 8. Insurance during repairs

If the car breaks down, the lessor provides the car for replacement, for the period of restoration repairs. Your business will not stop because of problems with vehicles.

No. 9. And even tax optimization

Another significant plus for zealous businessmen: monthly rent payments are reflected in operating expenses. Thus, the taxable base for income tax is reduced.

No. 10. Leasing is available in any city

The company has an affiliate network . And if your company needs to open branches in other cities, then there will be a ready-made profitable solution to replenish the fleet.

Let’s summarize.

Leasing is a long-term car rental with full service.

Full service long-term rental will be an effective solution for you if:

  • it is necessary to solve the issues of transport support of the company;
  • buying a car is not yet in your plans;
  • a personal vehicle is required for a certain period;
  • you want to save on the purchase and maintenance of a car.

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