Picture this: You’re running a business, and you need a reliable fleet of vehicle to get the job done. However, buying a new car can be a daunting task, and the cost of maintenance and repairs can quickly add up. This is where company car lease plans come in handy. Leasing a car for your business lets you have access to the latest models without the hassle of ownership and you also never have to worry about costly repairs or depreciation values.

So, let’s explore the many benefits of leasing a car for your business and how it can help take your business to the next level.

Learn More: Is It Better To Lease Or Buy A Car In Singapore?

1. Improved Cash Flow

One of the significant benefits of corporate car leasing is the improvement in cash flow. Leasing a car eliminates the need to spend a significant amount of money upfront to purchase one. Instead, you’ll have fixed monthly payments, which can be easily budgeted for, helping to improve your overall business’s expenditure.

It can also mean that you don’t have to worry about any unexpected expenses that come with owning a car, such as repairs, maintenance, and registration fees as they would be taken care of by the leasing company. All these factors contribute to better cash management, allowing you to allocate your resources towards other important aspects of your business.

2. Cost Effective

Corporate Car leasing is often cheaper than purchasing a new car outright as buying one requires a large upfront payment, often in the form of a down payment, which can be a significant financial burden. In contrast, leasing a car requires a much smaller upfront payment, freeing up cash for other expenses.

Monthly payments are also usually lower as businesses are essentially paying for the use of the car over a fixed period, rather than paying for the entire value of the car. This can be particularly attractive for businesses that have limited cash flow or want to manage their expenses more effectively.

You would also be able to claim GST (or known as VAT in some other countries) back on the monthly lease payments and gain access to the latest models and technology that are well-suited to the nature of your company.

3. Avoid Spending Money On Depreciating Cars

Buying a car is an investment that depreciates in value over time, which means, as the value of your car decreases, you won’t be able to recover the initial investment value when you decide to sell it down the road.

In Singapore, the depreciation of cars is a particular concern due to the country’s regulatory framework. which includes measures like the Additional Registration Fee (ARF) and Certificate of Entitlement (COE). The ARF is a tax on the vehicle’s value, while the COE limits the number of registered vehicles. As a result, cars here are generally more expensive as compared to other countries, and they depreciate faster due to the high costs associated with owning one.

With corporate car leasing, you get to avoid spending money on depreciating cars altogether as the leasing company would be responsible for the decreasing value of the car. When the lease term is up, simply return the car to the leasing company, or purchase the car at a value that was agreed upon in the beginning. Thanks to this, you can free up your financial resources by avoiding the expenses associated with purchasing a depreciating car and direct your funds towards other areas of your business that generate higher profits and promote growth.

Leasing a car for your business is definitely a smart and cost-effective solution, allowing you to focus on what matters the most – growing your business, improving your operations, and delivering high-quality products or services to your customers. With these benefits, it’s easy to see why this option has become a popular option for companies of all sizes.

At Hertz, we have a range of add-on services included in our long-term leasing plans like full maintenance and servicing, handling road tax and insurance matters as well as providing replacement vehicles during servicing or accident repairs, giving you a peace of mind when you lease with us. If you would like to know more, do contact us today