Article

Patrick Smith

Patrick Smith is a mechanical engineer working for a leading automobile organization. He has been a visiting writer for http://www.leasequit.com/. He has been a regular columnist for several business car related blogs and magazines. In this article, he tries to shed light on the business car leasing options available along with the associated benefits.

Patrick Smith has written 1 articles for SB Informer.
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Business Car Leasing - Focusing on the Benefits

Patrick Smith

September 20, 2016


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For many startup organizations and small medium sectors, purchasing company cars can be a highly expensive option to deal with. Rather, they may look for car leasing to save on their capital investment.  At the same time, it is also important to pick the most appropriate car finance method according to the mode of business. Remember, there are several finance methods available. Each comes with its selective mode of features and benefits according to business cash flow and accounting requirements. Business car leasing is often considered to be a highly beneficial method for financing company cars. Any company, big or small can easily finance its required vehicles with minimum down-payment cost and agreed mileage limit for a certain period. Since there is no outright purchase option to deal with, the customers will not have to worry about any additional VAT and insurance liabilities.

Business car leasing – clearing the concept

Business car lease is the process through, which an organization can easily use a vehicle for commercial/business purpose for a certain monthly fee. This is considered to be the easiest way for businesses and corporate houses to get hold of new vehicles without going for high monetary investment policies. It is often considered to be a better option than going for outright purchase and having full ownership of the vehicle forever. The valuation of a vehicle depreciates with the passing of time. For corporates and businesses, it will matter largely. Henceforth, going for lease agreement of superior car models is highly appreciated.

There are several types of business vehicle lease agreements available. You can look for the best options by clicking the link http://www.leasequit.com/.  Whichever you choose, there is an initial deposit to be made to secure the agreement part. In most common circumstances, the initial deposit will be a total of 3 monthly payments. However, it can vary from one agency to another. Also, the agreement terms and conditions will affect such scenarios.

Benefits associated with business car leasing 

In Europe, business car leasing has become extremely popular. After all, this concept eliminates the risks of operating company vehicles for the organizations.  Say for example, the lessee bears no risk or responsibility on the vehicle disposal, since the risk is borne entirely, but the lessor or leasing company.  When you opt for leasing, there is a fixed monthly cost, which helps in the budgeting part in a pretty straightforward manner. It will help in putting a hold to the unnecessary cash flow. When you opt for business car finance, the lessor has no option to purchase the leased vehicle, post the expiration of contract. Once the contract ends, the vehicle is returned to the leasing company. However, the lease term can be renewed further, if the lessee and lessor both agree to the offers. In some special scenarios, the driver may have the option to acquire the vehicle at the best market value. 

Monthly business car rental policies usually focus on the costing of the car that would include vehicle registration fees, period of usage, agreed mileage, road tax, forecast residual value and funding costs. The vehicle’s estimated valuation during the time of contract is considered to be highly crucial in these circumstances. This kind of monthly charge is also referred to as Finance Element of the rental.


                   



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