Every business aims to reduce cost & expenses while earning higher profits. Transportation is one such wing that guzzles a lot of money, especially if the business owns the fleet. Be it for Corporate Travel, Freight, or Employee transportation, no physical business can run without seamlessly managed vehicles. But, often the owned fleet, its operation & maintenance costs more to business than being an asset of profit. This is the reason behind several SMBs and MNCs embracing the leasing of vehicles rather than owning them!
In fact, corporate vehicle leasing is a win-win situation for any business and the trend is picking up. The credit for the same goes to a range of incredible benefits offered by vehicle leasing services India.
Let’s analyze the benefits of partnering with a corporate vehicle leasing company India, especially if you are a business;
Lower monthly rental payments than a Vehicle Loan
Lease payments usually cost less than a regular vehicle loan. Vehicle leasing paves the way for capital savings, majorly in terms of down-payments & maintenance costs. As an added benefit, most car leasing companies in India do not demand any security deposit nor a down payment from businesses they choose to collaborate with. Corporates are only required to make investments for the usage of the cars during the lease period, while the vehicle leasing company India shoulders the entire responsibility for the depreciation cost and the resale value of the cars.
Lucrative tax advantages
One of the most noteworthy benefits of corporate car leasing is tax advantages. On purchase of a car, it is mandatory to pay the relevant tax on the car, upfront. With a car lease, all that is required to pay is the tax on the business car lease as a portion of the monthly payment. Fortunately, this is also tax-deductible. If a business decides to opt for leasing cars there can be several deductibles based on a variety of expenses such as deduction in mileage or even maintenance fees. So, leasing cars is a financially wiser choice if you are looking to spend less on taxes.
Easy upgrade options available
Businesses need to constantly reinvent their strategies to stay ahead of their competitors. It is also important for them to keep upgrading their corporate facilities for the convenience of employees. Every 2 to 5 years, once the lease contract comes to an end, corporates have an opportunity to lease a brand new car from the corporate car leasing companies. Companies can choose to get the latest models & give their employees top-notch transportation facilities resulting in enhanced employee-retention rates.
Leasing vehicles is an essential aspect for the smooth running of business operations, and it is an economically viable and convenient option. Currently, as the lockdown ends, it has become vital for the businesses to ponder over car leasing.
Reasons why car leasing would be beneficial for the businesses post COVID-19?
Quality Corporate Transport at Much Cheaper Price
The economic shocker has hit businesses in all the industries during the national COVID-19 lockdown. As ‘Unlock Phase-1’ takes effect & businesses reopen, it is important for them to keep their expenditure at minimum & focus on ‘lean growth.’ Vehicle leasing gives them this opportunity where they don’t have to tie their cash in the down payments or maintenance expenses of the vehicles. They simply pay-per-usage of the vehicles & save on other costs.
Availability of Flexible Subscriptions
The world is undergoing an unforeseen crisis situation which has resulted in shifting the focus on the essential items. This implies that in the present scenario it is challenging to consider vehicle purchase. While on the other hand, Vehicle leasing services India is offering extended and flexible offerings. Hence, leasing a car has never been more convenient (due to the nominal cost of subscription that is devoid of maintenance charges and other additional expenses).
Car leasing companies offer your business and staff the reliability, durability, and exceptional advantages of the latest car models at significantly reduced costs. Corporates opting for business car leasing are completely free to use their leased cars the way they want, with tailor-made contracts fitting all their needs and requirements.
If you are on your way to restart your business operations and fretting over meeting safe and comfortable transportation needs for your employees, try out the popular vehicle leasing company services of SMAS India- an end to end vehicle leasing and fleet consultancy service provider in India.
Stay safe & good luck for your business!