Owning vehicles offers many advantages, but when you compare it with leasing, the latter offers even more. You get benefits of cash flows, and there is a far lesser administration that’s involved. Now let’s take a look at the many benefits of leasing vehicle fleet solutions in India:
1-Lower Upfront Investment
One of the major advantages of leasing is greater cash-flow available to you. The capital requirements are more in an outright purchase, but in leasing, you can do with smaller up-front investment. By going for leasing, all your operational expenses are reduced to monthly payments. And you have all the cash that you need to grow your business. If you go for owning the vehicles in the fleet, you may end having too much debt on your balance sheet.
2-Two Choices of Leasing
Leasing offers another benefit with two choices viz. closed-ended or open-ended lease.
The open-ended lease comes with shorter duration lasting for one year on the lower side. But they come with some risk. Almost every open-ended lease comes with a terminal rental adjustment clause. It makes sure that the leasing provider; get a predetermined value for the vehicle at the end of the lease agreement. If the sales price of the vehicle is more than this value, then lessee is credited with a surplus. But if the vehicle is sold for less than this value, the lessee will pay the differential amount. And that’s where there is an inherent risk with leasing.
The case is not the same with the closed-ended lease, as the provider of the lease will take the complete responsibility for the vehicle at the end of the lease. But then you will have to pay more in more of monthly payments.
3-Eliminates Administrative Headaches
Besides offering more cash-flows, the commercial vehicle lease may save money but reducing the administrative overheads significantly. The lease provider takes care of the fleet management tasks like paperwork and recordkeeping. It allows the company fleet manager to focus on fleet operations.
4- Savings from Value Leasing
If you are planning to hire a fleet, you can take advantage of the value leasing programs. These vehicles late-model vehicles which look new, perform well and offer great savings.
In the End
Leasing companies offer great vehicle fleet solutions in India. By going for one, you may save a lot of money for your company.