If you are a business owner looking to expand business operations, you will start considering adding more commercial vehicles to your fleet. In the last couple of years, the emergence and growth of several new business models like Ecommerce platforms have driven demand for commercial vehicles.
Businesses know that an opportunity exists and want to make the full use of the same. This means growing their fleet, addressing the pressure points of their clients and providing stellar services that are affordable as well as on time. While this is easier said than done, there is the overarching factor of costs to consider!
In this resource article, we come to the aid of business owners looking to expand their fleet of commercial vehicles. Even if you are someone that is looking for commercial vehicle rental in Singapore, this article will be helpful to you. This will also help give you an idea while leasing or renting is a far better option than buying the vehicle outright.
List of 5 Things to Note when Renting a Commercial Vehicle for your Business
1. A far more affordable and cost-efficient solution for your business
The first and most important thing that you need to factor is would be the costs. Leasing or renting is far more affordable than buying. This can help you save money, which can then be carefully invested in some other areas of your business. If you are a growing business that is conservative as far as its finances are concerned, you should look at renting or leasing options.
2. The business does not end up suffering from depreciation costs
The general period of leasing stretches from three to five years. Within the period, since you are not buying the vehicle, you do not end up suffering from the depreciation costs. Leasing a commercial vehicle does not end up getting reflected in your company’s balance sheets. The same does not happen when you buy a new one. When you lease, there is no depreciation.
3. A full-service lease or renting options includes service and maintenance
If you are a small business, you are always concerned about the overheads that the commercial vehicle is going to incur. Two key areas in this regard are service and maintenance costs. If you work with a credible and reputed dealership, you should push for a full-service lease that will look after any additional costs that the vehicle will incur during the leasing period.
4. Flexibility and convenience in using the commercial vehicle
One of the biggest benefits of leasing commercial vehicles is that you can simply return them when the term is over. In other words, you do not have to keep aging vehicles in your commercial fleet and worry about them breaking down or making insurance payments at irregular intervals. This adds an aspect of convenience and flexibility in operations.
5. This is perfect for an expanding organization that is looking to grow
You need to understand that growing business organizations want to work with as little liabilities as possible. Owning a vehicle as a buyer is something most businesses look to avoid. Ever cars used for directors are leased by the company since this is a far more affordable and convenient option. If you are growing and might be changing your plans, you want leasing.
Points of Consideration and Warning for Renting and Leasing Commercial Vehicles
In this section, we are going to look at some consideration points that you should keep in mind when renting or leasing commercial vehicles
- Most leasing companies and dealerships have a stipulated or set mileage over which you will be charged additionally. Make sure that you are paying attention to this aspect.
- When you lease, there are financing options that you can consider. It is important to get an idea with an outside quote than go for the one being offered by the dealership.
- Most financial experts point out that every small feature or point in a leasing agreement can be customized to suit your requirements. Make sure to negotiate hard.
The Bottom Line
If you are at the right place at the right time with your commercial vehicle, you might end up winning the client and their confidence. Renting and leasing is a far better option than buying a commercial vehicle. If you are looking for some guidance or direction with regard to the topic, or have some questions that you would like us to answer, please let us know in the comments.