Disclosure – I have been paid to publish this post. I hope, as always that you find the information highly valuable.
6 Things You Need To KNow About Business Car Leasing
The business climate has become so unpredictable, which has pushed many businesses to avoid committing capital unnecessarily. That’s why business car leasing has become popular. It’s flexible, affordable, and allows businesses to improve their cash flow, cut down on maintenance costs, and avoid depreciation. Business car leasing is also the simplest way for businesses to use the latest vehicles fitted with modern technologies and more safety features. So, are you looking to lease a single vehicle or a fleet throughout England, Scotland, Wales, and even Northern Ireland, here are some of the things you need to know about business car leasing:
The Car You Purchase Matters
The kind of vehicle model you choose under a business lease needs to fit both your personal and business needs, as well as function as a reliable asset. If you know little about vehicles then a fleet manager can help you determine the right vehicle that meets your needs.
You Will Need to Keep a Log Book
For the first few months, you are required to keep track of personal usage of the vehicle using a log book. This ensures the vehicle is only used for business purposes. Since your company is the registered keeper of the vehicle, you will need the log book to get parking permits and for taxing the vehicle.
Assets and Liability Form Part of Your Balance Sheet
When you lease vehicles using an operating lease, they don’t show as a liability or an asset on the company’s balance sheet, but rather they are “off balance sheet“. This means that the vehicles are only recorded as rental expenses, which results in a cleaner balance sheet.
Maintaining Your Asset
It’s important to schedule required servicing and maintenance so as to reduce the vehicle’s running costs and prolongs its life. You can also have the vehicle tracked; for security purposes, and to ensure it’s being used as intended. You need a fleet manager from Intelligent Car Leasing to help you maintain your vehicles, that way; you can have enough time to achieve your business goals.
Using a Fleet Manager Reduces Costs
Fleet managers offer smarter vehicle selection and assist you with the administration burden and costs. They can manage your operation costs, manage your vehicles, and maintain tracking. By outsourcing your fleet management, you can reduce fleet costs by taking advantage of the discounts on repairs, servicing, and fuel prices. All of your costs are consolidated into one invoice, thereby reducing the administration burden on your business.
Mileage
The number of miles affects a vehicle’s resale value as well as its service requirements. This makes it a huge determinant of business car lease rates. Every business car leasing contract has an agreed number of miles you are allowed to go per year. Underestimating mileage can lower the rental rate; however, it could result in excess charges when you exceed the contracted mileage at the end of the contract.
