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While the concept of renting or leasing vehicles is nothing new, it continues to be overlooked in the commercial world. This issue came into sharp focus recently, after both the rental and leasing industries earned considerable praise for diversifying the automotive market and driving economic growth. With this in mind, it is pertinent to ask quite why leasing is so easily overlooked in an age where it offers huge benefits and flexibility to British business owners.
Why is Leasing Overlooked?
Perhaps the primary reason why leasing gets overlooked is habit, as historically businesses were built on the principles of ownership and the value of acquired assets. In this respect, buying commercial vehicles would add to the value of a specific business, despite the associated burdens of ownership and the additional costs accrued through maintenance. The importance of owning vehicle fleets and company assets is still driven home today, even though the financial landscape has changed considerably over generations. Despite this attitude shift, those looking to free up their financial resources and manage monthly bills should consider the advantages of a van lease.
People may also overlook leasing because they are unsure as to its primary benefits and drawbacks. While market leaders such as Lease Van have done exceptional work in promoting leasing and offering huge value to clients, those who are new to the concept do not feel confident in making an informed decision when dealing with service providers. This means that while leasing may be the best option to suit their venture, they choose another fleet management method out of ignorance and fear.
Why Leasing remains a viable Option for Brands
If we place these misconceptions to one side, however, it is clear that leasing deserves to be given genuine consideration by business-owners in 2015. This is particularly true for small to medium-sized businesses, which can negate a lack of financial resources to fund their fleet through monthly payments and have a third-party assume responsibility for the cost of maintenance and replacement. This can also be a solid option for larger businesses that have limited cash flow.
On a final note, it is important to debunk the myth that the ownership of commercial vehicle adds value to a business. Vans and cars of any description are known as depreciating assets, which means that they effectively cost your business money year-on-year. Leasing negates this type of depreciation, as you can upgrade your vehicle every two or three years depending on the terms of your agreement.
