The Advantages of Leasing When Opening a Car Fleet

Many people know that buying is more profitable than renting. But this statement is not relevant to the sphere of cargo transportation. Today, fleet renewal is in great demand. This demand, coupled with increased emissions regulations, is driving up the price of new and used vehicles. Official Equipment Intelligence reports state that in 2015, the average resale value of commercial trucks was about $50,000.

Why Leasing?

Buying new or used vehicles and other equipment for your fleet through leases can affect your company’s bottom line for the better. There are a number of reasons for this:

Cost Savings

Leasing allows you to significantly save money and channel it into another area of your auto business. This is because you don’t have to pay the entire amount at once. In addition, you don’t have to make a down payment. You should also note that the monthly payments can be deducted from your taxable income.

In addition, leasing saves you time and energy. After all, they’re often lost when looking for sponsors or a loan. And in the 21st century, time and energy are money, too.

Greater Flexibility

According to information from GE Capital, about 85% of small and medium-sized businesses in a variety of industries favor leasing vehicles and other equipment. And that’s not surprising. The fact is that leasing provides greater flexibility if an unexpected expense or even a crisis within the company arises. It gives the chance to reduce and expand fleet depending on market requirements.

Leasing is also often used to “test-drive” vehicles. That is, before buying a truck you can understand if it is suitable for your business.

Relatively Lower Costs

Owning a vehicle is good, but there is one big disadvantage – the cost of its maintenance. If the truck breaks down or has an accident, you have to make repairs at your own expense. If you rent vehicles, however, the leasing company takes care of these costs.

No Worries About Resale

Vehicles depreciate a lot when they are in use. When you maintain assets (in the case we are considering, trucks), you will have to figure out how to sell them if they are no longer needed. Chances are, if you can find a buyer, the deal will be for much less than what you paid. But if you negotiate a competitive rental rate for the vehicles from the start, you’ll eliminate the worry about resale. It will also save you time finding a buyer and save you from the costs associated with transferring the property.

To Summarize

These days there are many ways to buy something with little or no money: installment, credit, leasing. Leasing is the most profitable option for companies, working in the field of cargo transportation, because it allows you to save money and time.