Vehicle leasing can benefit SME’s and large corporations alike when it comes to cash flow management, tax planning and operation optimization. Main benefits of vehicle leasing include reduced operational risk due to flexible lease planning and outsourced fleet management; the tax benefits including VAT efficiency; predictable budgeting of monthly lease costs; cash-flow optimization and the options of a vehicle buyout or a new lease of a newer model vehicle without event bargaining of a trade-in.

Vehicle leasing is  the most popular method of corporate fleet funding. Many SMEs today turn to leasing as well due to the possibility to choose from a wide variety of vehicles and extra benefits for a pre-agreed monthly payment over a fixed period.

A Contract Hire term can be valid for 24 and up to 60 months. The benefit of the vehicle lease contract is that the lessor predicts the future residual value and maintenance costs of the vehicle, and sets the residual value of a leased vehicle down in the leasing rate. If any shortfalls occur, the leasing company bares all the responsibilities while the lessee organization bears much  less risk.

When choosing a lease company or a leasing agent for your complete fleet solution or any particular vehicle lease, consider the benefits of special deals which the leasing companies have with particular vendors that you might be your preferred choice for vehicle leasing.

Tags: benefits, vehicles