Leasing Commercial Cars and Vans Can Stop SMEs from Going Broke: A Leasewell Report
Added: 26 September 2014
How do you use your commercial vehicles? Do you use them for setting up mobile retail outlets? Do you use the vans for promotional campaigns? Or is it that you use them mostly as delivery vans? Whatever the purpose you want the commercial vans to serve; leasing vans can be a wise idea as opposed to buying it outright. Recent reports suggest that more than £6.7 billion is lost by British small and mid-size enterprises every year due to the depreciating costs of the cars and vans. However, with companies like ours offering flexible and affordable leasing packages, seeing light at the end of the dark, long tunnel is only a matter of time.
On the brighter side of Thames, economists are foreseeing a steady financial growth over the next couple of years and that marks the beginning of a post-recession era. Business conditions and overall investment environment have become far better and UK market has recuperated from the financial stalemate, slowly but surely for the better. Did you ever think that the cost of owning a commercial vehicle could run into a really huge amount of money, an amount which you could have used for continued development of your business? There are currently a little more than 1.5 million vans and LCVs or Light Commercial vehicles owned by SMEs in the UK. The sad truth is, majority of these commercial vans are financed by banks and other financial institutions that their machines on interest money.
The irony is, the average lifecycle of a commercial vehicle
is four years and the business owners often need this same span of time (or more or less) to repay their auto loans. By the end of 4 years, a heavily used commercial vehicle is all played out and it becomes a burden for the owner. Why do so many business owners want to own commercial vans and cars while van leasing is a feasible option for them? The emotional pull works as the main drive for buying and owning commercial-grade vans and cars. One in four business owners who responded to a recent survey told that they wanted to make one-time investment in commercial vehicles and that they didn’t prefer the monthly disbursement arrangement. Does buying a van ensure a high ROI for your business? Probably not. Here is why.
First off, the money spent in buying vehicles can be used in business development. If you are an ambitious entrepreneur (which you surely is) you can use the money as working capital and clear your debts and overdrafts as well. You can put the money in promotion and marketing as well as build infrastructure with the money. Put it in a nutshell, you don’t have to bear the staggeringly high upfront cost of buying a vehicle. On the top of it, you don’t have to worry about the depreciating cost of your asset.
Take an informed decision today! Do not buy a car, lease it! It will save you a great deal money!