There are many reasons why a company might decide to lease rather than buy their vehicles, especially here in New Zealand, where all sectors are very competitive. In this article, we take a look at some of the benefits that vehicle leasing offers New Zealand businesses, with the aim of giving you a deeper understanding of vehicle leasing.
Lack of Capital
If a company requires vehicles and it has limited funds, leasing might be the best option, as there are some no-deposit packages that offer attractive terms for businesses that are short of capital. You can include vehicle maintenance, servicing, registration and insurance in the package, which allows you to get the vehicles on the road with a single monthly cost. If you are looking for the best car lease in New Zealand, start with an online search to find the top provider and check out the many leasing packages they have on offer.
All-Inclusive Packages
The cost of putting a vehicle on the road can be prohibitive for a small business, what with registration, insurance and servicing, and for some young companies, this strains their financial resources and puts them in a vulnerable position, which is where car leasing comes into its own.
Car Lease Options
The following lease packages are available to New Zealand businesses:
- Operating Lease– A good way to access the quality vehicles you need without putting the assets through your books; a single, affordable monthly payment includes servicing, registration and insurance, which can be prohibitive for a small business. At the end of the lease term, the vehicles are returned to the leasing company. This is ideal if you are looking to free up capital for other purposes. Fleet management is incorporated into the package, which makes this the most popular type of vehicle leasing.
- Finance Lease– This option enables you to enjoy the full use of vehicles without the hassle of ownership, with the leasing company purchasing the vehicles, and you pay a single monthly payment that includes all running costs. When the lease expires, you have several options: you can purchase the vehicle with a balloon payment, or you can simply trade it in for a new vehicle, or refinance the value and carry on leasing. Buying used cars is fraught with risk, as this article highlights.
- Sale & Leaseback– If you already own a fleet of vehicles, it is possible to sell the assets to the leasing company and release the capital. The vehicles are then leased to you under a structured agreement. This allows you to eliminate ownership and affordably run the fleet and pay a single monthly payment.
If you would like to learn more about the many benefits that vehicle leasing brings to the table, talk to New Zealand’s leading car leasing company and boost your business. Free up capital to be used for expansion or other purposes.
