When considering the differences between buying cars for your business and services offering fleet leasing financing, there are many concerns that have to be kept in mind. First of all, you can’t make your decision on a whim, since there is far too much at stake, and the risks involved can be quite high. Secondly, not all businesses are the same. While for some businesses it makes more sense to buy cheap vehicles, you might have to consider the alternative version of leasing, even if you’re more comfortable with the idea of buying.
Circumstances don’t have to lead your decisions, however. Depending on your business and your specific goals, you can make the best decision for your business and even wait to implement it, if your finances or other factors don’t allow you to go through with your plans for the time being.
The Advantages and Drawbacks of Buying
Whether you run a maintenance service or a delivery company, buying the cars or trucks you need for your business can make a lot of financial sense long term. Aside from the fact that you’ll own your vehicles, and won’t have to pay a lot of money for them long term, you also get rid of issues such as covering interest rates and other expenses that would come with fleet leasing.
On the other hand, buying has its own drawbacks. Depending on the size of your business and the extent of your budget, even purchasing one car can be a stretch at first. Also, some businesses don’t start offering real returns until much later, and you might end up being stuck with almost a million dollars deficit, while the stress related to the risk that your business might not recover those funds will remain quite high.
Under the circumstances, buying your vehicle fleet is a risky endeavor. Of course, if you already have additional investments, and you don’t necessarily have to get a lot of money from the bank to finance your new cars, then it makes sense to try it. However, even so, you’ll practically be tied to minimizing your business’ expenses, and you won’t have any control over how your investments will turn out over the long haul.
Fleet Leasing: A Viable Alternative
Fleet leasing comes as an excellent alternative for smaller businesses that don’t necessarily have the ability to come up with the huge amounts of money required for large vehicle investments.
By leasing cars at about $300 to $700 per month, for a reasonable amount of money, you can get your complete fleet of vehicles and have complete control over your gradual, monthly investments. If your business isn’t going too well, you can always cut down on the number of vehicles you lease. Also, if you aren’t yet making enough money during the first couple of quarters after starting your business, you’ll find it easier to compensate for the costs, and you can always pull out partially, without worrying about losing large amounts of money.
The safety and security of fleet leasing has led many business owners to adopt this approach for their services, delivery companies, contractor services and transportation services throughout the country. Moreover, fleet leasing financing is cheaper than ever, so you can rest assured that you’re getting the best value for your investment.