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Seven Key Advantages of Fleet Leasing vs. Ownership

Seven Key Advantages of Fleet Leasing vs. Ownership

If you're wondering which is better -- fleet leasing or ownership, let's take a look. Here are seven reasons why fleet leasing supersedes ownership.


Enhanced Cash Flow



When you do a commercial leasing arrangement, you don't need as much for a down payment. This means your company can hold unto the cash it has and use it for other business expenses. With a heftier operating capital, it will allow you to take advantage of potential business opportunities and boost your business prospects.


More Flexible



There are two types of commercial leases:


Open-ended leases: these leases are created to allow full flexibility for the lessee. At the end of the lease term, you have several options. You can purchase, sell, or lease it. Consequently, you can upgrade as often as want.


Closed-end leases: these leases are a bit more money but have protection against something unexpected happening. At the end of your lease, as long as you didn't have unreasonable wear and tear or mileage, you can turn it in and walk away.


Usually you can have the option of either type of arrangement and can create a plan that meets your financial or situational needs.


Access to Tools


When you lease a fleet through a reputable dealer, you may be able to have access to a variety of management tools, including the following:


• Fuel expenditure records
• Mileage and location tracking
• Fleet maintenance reminders and recommendations
• Assistance with insurance claims and repair


Outsourcing Routine Administrative Tasks



Several responsibilities come with ownership. For example, you have to deal with taxes, license renewals, and so on. When you choose to lease, you won't have to worry about these things because the company will take care of it for you. This relieves a lot of stress and care.


Boost in Corporate Image


When you are using newer fleet vehicles, it promotes a more positive image to the public. They will see a better public persona of you and this can boost your brand image.


More Access to Vehicles



You will have greater access to vehicles because fleet leasing companies obtain from a variety of localities. This may result in lower costs as there are more availability.


Less Impact on Your Finances


Leasing vehicles won't have as much impact on the assets and debts in your balance sheet because they are generally considered in the category of business expenses. Overall, this may aid in your overall financial picture.

Categories: Leasing vs Ownership