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Tracy Spence
Tracy Spence
Tracy Spence's Blog

Choosing Commercial Vehicle Leasing

 

What is commercial vehicle leasing?

Commercial vehicle leasing is the process of leasing a vehicle for business purposes. Sometimes called business contract hire, this acts as an alternative to outrightly buying a commercial vehicle. Having use of a commercial vehicle often allows a company to transport goods and carry out their service more efficiently and effectively. If your business requires the use of a commercial vehicle, leasing is often the easiest way of making this happen.

Why is commercial vehicle leasing a good option?

  • Avoid upfront costs with commercial vehicle leasing

No matter how desperately a company might need a commercial vehicle, it’s not uncommon to lack the funds to buy one at the time it is needed. This can lead businesses to look into other options. Commercial vehicle leasing helps avoid high upfront costs and is a sound business decision for many. This is especially true for younger businesses. Buying a vehicle requires a lot of money, and if you are looking to avoid taking a big financial risk, leasing is a way of doing so. If you don’t have the cashflow that allows you to buy, commercial vehicle leasing is an easier option that requires a reduced cash outlay.

  • Avoid depreciation with commercial vehicle leasing

Although buying a car can appear to be a good investment, leasing means you won't have to deal with the depreciation costs that inevitably occur soon after purchase. In this way, commercial vehicle leasing can be a smart decision when compared to buying a commercial vehicle.

  • Avoid the stress of repairs with commercial vehicle leasing

Depending on the leasing package you pick, the lessor may also deal with the maintenance of the vehicle. So even if there seems to be a problem with the vehicle, you won't have to bear the financial burden of repairing it. This makes commercial vehicle leasing good for those who don’t want the full responsibility of sorting out running costs and repairs.

  • Flexible commercial vehicle leasing options

Some choose commercial vehicle leasing as it offers more flexibility than buying a vehicle outright. This is because there are many different types of leasing options, so there’s bound to be something to suit you. You will be leased the vehicle for a fixed period, but if you need it after the contract is finished, you can always lease again.

What vehicles can be used with commercial vehicle leasing?

Various vehicles can be used in a commercial capacity. The types of vehicles used in commercial vehicle leasing can vary from big industrial vehicles to vehicles used in the plumbing or electrical sectors. Vans can include panel vans, dropside vans, and tipper vans. Additionally, it’s possible to choose commercial vehicles in the forms of cars, trucks (such as pick-up trucks), and other HGVs.

Are there downsides to commercial vehicle leasing?

Commercial vehicle leasing makes it your responsibility to keep to the set terms and conditions of your contract. This could mean limitations on what can be changed to the van, including the exterior (which you may want to utilise for branding or advertising purposes). However, each circumstance is different, and Asset Funder are able to assist in finding the best option for you.

Who can commercial vehicle leasing help?

Whether your business is seeking a commercial vehicle due to expansion, or your business heavily relies on the use of a commercial vehicle down to the nature of your industry, Asset Funder are willing to offer support. Business growth can be a great thing, but you never want to feel held back from offering your services to customers due to a problem of transportation. Many of us are reliant on our vehicles for the ease of transportation they offer, and this is not much different in the commercial world. Having a commercial vehicle to support your business can generate new or increased income. If you don’t have the money to buy a vehicle at the moment, commercial vehicle leasing could be just the option for you.

Is commercial vehicle leasing for everyone?

Commercial vehicle leasing may not be for you if it is important for you to own your own vehicle. Leasing means that the commercial vehicle doesn’t actually belong to you, and the expectation will be for you to return it at the end of the contract. Alternatively, if you have decided that you have the money to buy a commercial vehicle (and cover the additional costs that come with it), you might decide that commercial vehicle leasing is not for you.

Can Asset Funder help with commercial vehicle leasing?

Yes! Asset Funder are pleased to offer our help when it comes to commercial vehicle leasing. Asset Funder have a history of helping businesses get better by providing them with the funding and support to get them to where they want to be. At Asset Funder we offer quick decisions when you need it most. We do this with the help of our fuss-free application form. We are also upfront about what we offer and have no hidden charges with our leasing options.

If you’re still trying to weigh up the pros and cons of vehicle leasing versus vehicle purchase, no problem! At Asset Funder we understand these things can be a big decision and we have experience in dealing with both. If you don’t think commercial vehicle leasing is for you, you can read about some of the other options we offer on our website. However if commercial vehicle leasing seems like a great choice for your company, get in touch today to learn more about how we can help today.



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