Most of the large companies need a vehicle fleet to meet their transportation needs. When it comes to moving the employees to the workplace, leasing is one of the excellent options. It not just helps the companies save money but also helps the employees in many ways as well.
Vehicle leasing is the first way to avoid loans and is the preferred way to avail the services of the car across the globe. Buying a car comes with its challenges; you have to deal with the dealer, maintenance workshops, taxing authorities, and insurance companies, besides dealing with other regulators who register a new vehicle.
With the help of a vehicle leasing agency, all the procedures are centralized, and there are fewer administration costs and more savings. Add to this the flexibility, which isn’t there with an owned vehicle.
Your Core Business Demand More Attention
When you focus more on non-core activities like owning and maintaining a vehicle fleet, it puts an extra burden on the finances. It means costs will be incurred to own and administer these vehicles. Not just this as a vehicle is a depreciating asset and this means you’ll have a bear that costs as well.
With a sale and leaseback of the fleet with a corporate vehicle leasing company in India, you can remove the cost of ownership. It frees up your resources and your mind, and you can focus more on the core business activities.
It also helps you in the firm as well. You can sell your current fleet and can get the capital for the company. This way you will not be impacting any of the funds as well. Besides, all the complications of managing and running the fleet will be only reduced to a monthly payment. It allows the owners to control the costs and focus more on productive activities.
Your Company Saves More
When there is no upfront cost to buy the fleet of the vehicle your business saves a lot of money. In a lease, you pay for the “usage” of the car rather than for its ownership. You get the vehicle for particular tenure and a distance limit. You also get vehicle management services which may be included in the rent.
A lease agreement saves tax for you and doesn’t have to allocate capital to them, and that makes it a better option for the corporate. It helps corporate in the budgeting. The company doesn’t have to pay the insurance and road taxes in one go, although there is a rental which has to be paid.
Fewer Operational Problems
There are limited corporate leasing companies in India which will entirely outsource the maintenance of the fleet and take the entire responsibility of disposing of the car once the lease is over. It means lesser business challenges and lower risks.
Your Employees Are Also Happy
The employees of the company don’t have to pay anything to get a car on the lease. There is no down payment requirement. The employees are also able to save the taxes on the rental paid by them. There is no paperwork required as well, and they aren’t going for the loan. Your employees don’t have to bother about the maintenance either.
With so many benefits you will certainly not like waste your company’s resources on owning a vehicle fleet. Although, there are many corporate vehicle leasing companies in India before choosing one for yourself requires some research. You’ll have to carefully understand the lease agreement and do back-of-the page calculation to see the kind of benefits you can get for your company and the employees.