Cost Effective Building of Your Commercial Fleet – Should You Rent?
Your business is booming and you need to increase your production, delivery, or distribution. Looking for ways to expand your business does not mean you need more marketing or PR. Maybe a commercial fleet is what you need.
A commercial fleet is a significant addition to complement your business. It can make your supply chain efficient. There are options to having a commercial fleet; you can either rent them or own them. Both have their advantages but for now, let us take a look at how cost-effective leasing a commercial fleet can be.
Save you money
Leasing a commercial fleet gives you several expense leeways. One of them is freeing up significant cash from buying your own. It takes a hefty down payment before you can acquire the number of trucks you require. When you lease, you only need to pay a fraction of it, depending on the contract you are signing. It would be better to use the money to invest on significant projects in your business like product development.
Benefit of Leasing
Leasing is paying for the use of the fleet, without the commitment to it after its optimal use. It means flexible ownership and no hard commitment to the unit. You do not have to think about disposing it afterwards. There are two types of leasing; closed-end and open-end.
Closed-end leasing is a permanent term agreement wherein you can only use the fleet for a certain amount of time.
Open-end leasing is an agreement wherein you start with a certain lease term then, at the end of the agreement time period, any additional depreciation must be paid. This also works in reverse. If the vehicle depreciates less than the term agreements anticipated, the rental company will pay you the difference.
Less administration and management
Leasing gives you more time to spend on important matters of your business. Since you are only renting the units you are not required to do the registration, title, and property tax. No paperwork, more time, and less stress equals happy, productive you.
If you want to escape tax the legal way then leasing will give you the ultimate solution. Since your fleet is listed as lease you can put it in the balance sheet as a form of expense. No need to pay for the ownership tax obligation of a depreciating asset.
Fleet leasing companies provide the maintenance plan for their fleet on the road. To think that your units are well-maintained by professional mechanics gives you relief that less road mishap will happen. That means less down time for your business.
Take advantage of technology
Commercial fleet rental companies thrive to provide brand-new, up-to-date units complimented by the latest technologies. Usual technology in the vehicle includes safety features and tracking device. They can also offer fleet management software that can be helpful in tracking and checking your fleet costs. Additionally, they provide fuel programs that can help control your fuel cost and automatically schedule you for preventive maintenance and fleet cycling.
It Helps in Marketing
A better-looking and modern fleet can boost your business image. It can present a reliable and fresh-company identity perfect for capturing the younger generation of consumers. So not only does leasing a commercial fleet help you with your transport needs, it also contributes to your marketing arrangement.
Leasing your commercial fleet is a viable option to reduce cost and increase profits. Before you make your next big business decision, try to look for several options so that you can make the most of your time, money, and effort.