For most businesses, vans are a must-needs necessity for handling day-to-day operations. For industries that rely on delivery, or transportation, or building, a fleet of vans are the vehicles of choice, so options to lease or buy that fleet is definitely an important one.
There’s various ways to consider which is the best route to take. Buying your fleet means you can do whatever you want with it. Fender bender? No problem. Random alterations? Cool. Packing on a bunch of miles? Fine.
With a lease, there’s limitations to all this, but the perks might beat it all.
There Are Different Kinds of Leases
In the fleet world, there are various lease options, depending on who you’re leasing with.
Capital leases:
Are known as long-term leases for business equipment. In these leases, the piece of equipment, or vehicle in this event, is considered an asset under the respected business. The benefit of these type of business van leasing is that businesses are seen as the owners. However, this is still considered a loan. So, given the nature of the lease, the value of the vehicle will depreciate.
Operating Leases:
These loans are typically short-term and more formally known as service leases. Typically, businesses will not open an operating lease for a car; however, it’s still an option that is available. With this lease, businesses do not take ownership over the equipment, or vehicle. Another significant different between operating leases and capital leasing is that this commercial vehicle lease provides businesses with the option of bargain purchasing. In other words, if a business decides to purchase the vehicle outright, they can under this lease.
Then you have commercial vehicle lines of credit. Businesses may find commercial vehicle lines of credit more beneficial than typical leasing programs. Commercial vehicle lines of credit are great for business owners looking to establish a fleet and lease multiple vehicles, which obviously means a great option for business van leasing. However, this option may limit companies to the type of vehicles they may lease.
Consider Your Options
When it comes to choosing whether to lease or own, it’s important to look at your company’s overall objectives and goals. Just as it is with anything, both leasing and purchasing have its pros and cons, and specifically at Corporate Fleet Services, our team will sit down with you to discuss what works best for your situation.
Overall, leasing gives you the opportunity to only pay a portion for your business van fleet, which will leave your company more capital each month to allocate to other assets and areas.
Having capital freed up to reinvest is a major factor for most companies. A monthly payment for leasing a van fleet is always lower than purchasing one, and it also affords you tax benefits. With a lease, you can deduct that expense from your taxes each year.
Of course, there’s more perks, but those are just a few. Contact us for more info on the business van leasing process, and let us customize a lease package that works with your company’s budget and goals.
