Tuesday 27 January 2015

Business Car Leasing promotes Growth and Savings

The primary goal of any business concern is to earn profit. If they purchase a fleet of vehicles for business purposes, they would be investing a lot of money and would also have to pay huge amount of money in servicing. They will have to incur loss in terms of the depreciating and low-resale value of the vehicles. A lot of money will be tied up in assets which could otherwise have been used for important business purposes. An efficient and cost-effective option for any business, large or small, would be business leasing.

Business car leasing means the renting out of vehicles for use by businessesand organizations for business purposes. They do not have ownership of the vehicles and can only use it for the time period mentioned in the lease contract. The contract can be for a maximum of 60 months. Since the businesses do not own the vehicles, they do not have to pay road tax on each vehicle. The money saved can be used to further the business. With business car lease deals, the company can lease out brand new vehicles after every 2 or 3 years. This will help to create a good impression among the clients, since every time they visit, they will be driven in new vehicles having advanced features and better safety. For most part of the lease term, the repairing costs of the vehicles will be taken care of by the warranty provided by the manufacturer of the vehicle and for the remaining term, the user can lease out affordable car servicing and maintenance packages. Most leasing companies offer the option of purchasing the vehicle at the end of the lease term, if the user is interested. The vehicle isoften sold at a price much lower than the original market price.

If you want to avoid paying extra to the leasing company, calculate the annual mileage limit used and draw up a lease contract accordingly. Try not to exceed that limit and keep the vehicle in a decent condition.

Do you want to avoid paying road tax? Do youroughly know the fixed mileage that your vehicles run in a year? If you do, leasing is probably a good idea for the health and growth of your business. Log on to www.lvm.co.uk to know in detail about the various business deals offered.

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