November 21st, 2018
For businesses that are still in the early days of their organisation, business car leasing is a great way to keep a company moving forward, without having to make a substantial investment into vehicles.
However, some companies are still reluctant to make a choice on whether they should implement a grey fleet policy or utilise a vehicle-leasing specialist. That is why this month we wanted to explore some of the ways that a new business vehicle lease could benefit your organisation.
Fixed cost motoring, with no depreciation risk
New businesses need to maintain tight controls over their finances, especially in the early days, which makes new business car leasing a fantastic option. The fleet manager or business owner is able to forecast their monthly expenditure, whilst only having to pay the fixed monthly figure.
At the same time, once the lease contract is finished, you have the option to give the vehicle back, without having to worry about depreciation or loss of investment.
Access to funding with GKL
Generally for new businesses, trying to find funding for leasing vehicles can be very tricky, or impossible. Many leasing companies will not touch companies that have not been trading for over 3 years!
GKL take each business on its own circumstances and can help to finance new and start-up business. Some of our largest customers started with a new business, where access to funding was difficult, but GKL were able to lease one or two cars! Call us to find out more about your options.
Access to a wider range of vehicles, based on your unique needs
For new businesses, it is crucial that they have the right vehicle for their exact needs. New business car leasing does just that, fleet managers are able to select vehicles based on their unique requirements, without having to worry about investing large amounts of capital on a vehicle that is not suitable.
For example, if a business is planning on operating within larger urban areas, they could consider taking out a new business vehicle lease on a plug-in hybrid or electric vehicle. In contrast, if an organisation has a small team that need to travel long distances to meet clients, they can select a vehicle based on overall mileage and fuel economy.
Benefit from greater fuel economy and safety features
As with all businesses that have employees that need to drive, ensuring that their vehicles are safe and road-worthy is always a key concern. When it comes to new business car leasing, this should not be a cause for concern.
The business will have the ability to select vehicles with the latest safety technology, which means your Duty of Care requirements are adhered to and in the unlikely event of an accident, they will be protected.
Not only that, but newer vehicles are always being developed to have greater fuel economy, which helps to reduce your business costs, and the personal ones of your employees.
Maintenance can be included in your lease
We have already mentioned that newer vehicles come with the latest safety technology, but often these can be costly to replace should something go wrong. In the case of new business car leasing, this is yet again something you do not have to worry about.
Maintenance packages can be included in the term of your contract, which means that your business does not have to invest in unforeseen repair bills. Simply arrange to have the vehicle serviced or repaired at the main dealer representing the manufacturer and all is taken care off, this applies to most events except for tyre punctures, screen chips and anything that is not normal wear and tear or damage.
Not only does this ensure vehicles are kept in prime condition, it helps to improve your cash flow and forecasting throughout the year.
Short and long-term leasing options are available
For any new business, taking on another member of the team is an investment, but if they need to use a vehicle for work, it can be a costly one. However, with new business car leasing, that doesn’t have to be the case.
If they are still in their probationary period, you can take out a short-term lease, which means that they are able to fulfil their new duties and your business is not tied into a long-term contract.
In the unfortunate instance that they do not stay with your company, the vehicle can be returned. For a new business start-up, usually there is a minimum commitment of around 6 months but this varies according to each businesses circumstances.
In summary, new business car leasing gives organisations the opportunity to expand their company, invest in their employees and maintain tighter controls over their monthly finances.
If you would like any further information on how GKL can help find the most suitable finance option for your new business, then speak to one of our team today. They are more than happy to help, and are able to find the ideal solution for your business.