Many people get confused when it comes to leasing a fleet. There are merits as well as demerits of choosing the option of leasing a fleet for your company’ benefit.
Great benefits – The greatest merit to hire a fleet on lease is the availability of the cash for the company. It is true that a little amount of upfront investment is needed when you think of leasing a fleet instead of owning the fleet. It is a fact that a properly written agreement of lease will lessen the price of fleet, which will be operated per month for the company’s sake. Even, you can save on truck servicing. Such an agreement will keep the credit lines away from problems and cash will be there for investing in your company. You can use the money which is spent on purchasing the fleet and on its maintenance for expanding your business.
Things to be chosen – You must select the right lease to get the most financial benefits for your company. One can choose commercial vehicles on lease in two types – a] Open-End lease and b] Closed-End lease. Many companies in distinct countries which take a vehicle on lease from reputed fleet management and fleet maintenance services will always select the Open-End option. This option will allow the company to use the vehicle as a company’s asset. But, in Closed-end option there is no limitation for mileage and no penalties have to be paid by the company for more wear and tear and even earlier termination. So, as a company’s owner think that what can work for the better growth of your business.
More significant information – Those companies that have the ownership of their fleet have the responsibility of various administrative duties. Generally, the title holder has to deal with all things – starting from taxes owed to licence renewals. When the company’s owner will lease a fleet, the leasing provider will handle different kinds of fleet management tasks, like record keeping, paperwork, so that the company’s owner can focus on his or company’s business only.
These services are very beneficial for vehicles that you are taking on lease for your company’s profit. Several fleet leasing providers will give certain options to businessmen for maintaining their leased vehicles, such as roadside assistance. You just have to pay a certain amount of money to the fleet leasing provider every month to get the maintenance services. Seek advice from other people if you have any confusion.