As the old adage goes, cash is king. In fact, our experience has always shown that those companies which always treat cash, or to be more precise working capital, as a scarce resource (even in times of plenty) are typically more successful over the long term than those that don’t. It’s for this reason that businesses of all colours will consider leasing an ever wider variety of business assets - from aeroplanes to computers, furniture, time clocks, medical equipment, wheelie bins, fairground rides and telecommunications equipment is just scratching the surface. You name it. A lot of people lease their business equipment but due to the often high levels of emotion that goes with motor vehicles it has taken longer for car leasing to become accepted.
People lease to conserve capital, improve tax efficiency and to avoid the financial shortfall that sometimes happens when funding expensive vehicles.
As I final point, whilst your mother may have told you that it may not always be wise to follow the crowd, there is a reason why every single FTSE 100 company and all of the major accountancy firms lease. It makes sound financial sense.
If you are looking at a fleet of high use high mileage vehicles or you are fortunate to be looking at a particular vehicle that is benefiting from additional discount, leasing will make a powerful argument. But you need to consider the timing of the purchase and the longer term strategy of the company to make sure that you are in fact doing the right thing. We talk to business owners about the real ways you can plan your vehicles. Staff cars often take a different approach to the significant purchases you may be able to afford if you are a senior manager or owner of a business. A strategy managing the company tax position, personal tax, the right image, flexibility of the offer are some of the many things we will help you consider. Small to medium size businesses need to make sure they have considered all the options. Buying a good model late low mileage car may be better in a number of ways and should not naturally be discounted. The second vehicle for the family may be something different, a used Mercedes convertible or a usable family bus may be required also flexibility on mileage, termination and funding may mean that this option will suit your circumstances better.
Both statements can create some confusion which is why we suggest you talk with us so that we can use the experience and skills we have gained to make sure the right type of vehicle for you.