Every business owner has different ways of managing their respective firms.
However, there are some elements of common ground in certain leadership tactics. One of these areas is the leasing of corporate cars, a long-term arrangement where the vehicles are borrowed for an affordable monthly sum instead of being bought outright. Despite the temporary nature of these deals, they continue to resonate with a growing number of business owners.
But what are the benefits that make these arrangements so appealing to the leaders of firms? Read on after the jump to find out.
Leased cars are not an enormous financial commitment in the same way that owning a vehicle can be.
For instance, because leased cars are not a bona fide asset of the firm, this means the monthly payments to lease them can be claimed as a business expense. Other costs that are either reduced or eliminated may also include depreciation, maintenance, repair, and fuel expenses too. Registration fees can also be wavered in some instances as well.
Not only this, but the purchase of a vehicle can even have hidden financial risks. This is what happened in 2019 when many car buyers were overcharged by as much as £1000 in their purchases. Obviously, this is a lot of money, but when it comes to funding a fleet this type of deception could put a huge dent in any firm’s cashflow. Leasing swerves around these issues all together, with fixed and transparent monthly payments keeping matters straightforward here.
Leasing a vehicle is typically a more flexible arrangement than the more permanent fixture of buying. There’s also more of a window for opportunity.
For example, it’s worth noting the special offers that companies like Vantage Leasing introduce. They gladly reduce costs on the monthly payments on their business leases, and even offer Pay Nothing Upfront policies on their best deals. They have availability on other payment plans too, ultimately providing a more flexible and affordable arrangement for business owners to take advantage of. Their service is tailored to the capabilities of their customers.
This kind of wiggle room can just give firms more room to breathe in their arrangements and give them more options to enjoy. After all, the best businesses are always on the lookout for a good deal, and they may even enjoy the chase involved in finding one that’s perfect for their circumstances. Ultimately, better prospects are in plentiful supply under a leasing agreement.
Better quality cars
As leasing a fleet of cars is typically more affordable than purchasing a fleet of mediocre ones, business owners can ensure their firms, and everyone within them, have access to higher quality cars.
Firstly, this may mean significant improvements in terms of the safety features that higher-end cars are equipped with. After all, newer cars can feature state-of-the-art technologies such as lane assist, blind spot detectors, reverse park assist and more, greatly reducing the chances of accidents. To have these assets within a firm is a huge advantage when it comes to staff wellbeing.
There is also the aesthetic side of things to consider also. If everyone at the firm is driving a great looking car, it can perpetuate an image of success, something visiting clients may come to witness and be impressed by as they arrive on the carpark of the workplace premises. Business owners could dress-up their car park as a shop might their window, and leased vehicles could have an instrumental role in that.
Business owners may also secure a better first impression at any client meetings they and their staff drive too also. Perhaps a nice car can serve as an icebreaker too, helping workers hit it off on the first meeting with new associates. Even a humble SME can feasibly appear to have the wealth and assets of a larger company if leased vehicles are in play, helping them polish their professional image.
Of course, when workers look great and feel looked after, it may be more likely that they’ll come to have deep rooted affections for the company they’re working for.
An Oxford study from late 2019 asserted that happier workers were 13% more productive, so nurturing that side of things in a firm is vital. Leasing vehicles could contribute to that goal, perhaps giving more economically challenged staff a taste of the finer things in life by driving a high-end company car. They may also feel more appreciated and respected, and thus more willing to put their best foot forward in their work too.
Additionally, happy workers may be more likely to be loyal workers also. The use of leased vehicles can simply make people feel lucky to work with a firm and may serve as an extra incentive to stick around long-term. Even on a subtle level, leased vehicles can be a constant reminder of how much the company cares for their workers, a measure of how they’re willing to go the extra mile to make sure their workers are safe and comfortable.