As a new business owner, it is imperative that you create the right impression. According to experts, you are afforded just seven seconds to cultivate a strong first impression as an individual, which means that there is minimal margin for error in competitive or challenging markets. This is even more important when you emerge as a sole trader or commercial startup owner, as you alone bear the responsibility for how your business is perceived by customers.
You are also likely to be mobile as a new business owner, especially in a thriving economy. This creates a need for suitable attire and viable mode of transport, which matches your business precise proposition and the expectations of your customers.
So with growth prevalent in everything from the construction sector to the property market, there has been a rising demand for commercial cars and vehicles in 2015. The primary challenge facing entrepreneurs is choosing between leasing and buying a vehicle, so consider the following points before making a decision:
The burden of ownership
Regardless of why you invest in a vehicle, the demand of planned and unscheduled maintenance can quickly take a financial toll. This is the last thing you need as a business owner, especially when you consider the time required to organise repairs and liaise with mechanics.
In this respect, leasing is a more suitable option as it enables business owners to relieve themselves from the burdens of ownership and place this in the hands of a reputable leasing organisation.
Cash Flow Demands and Financial Management
The decision to purchase or lease a vehicle depends largely on each individual business, and the current cash balance and year-to-date profitability of the business.
Whether your purchase a used or new commercial vehicle, you will be required to make a considerable, up-front investment in the future of your firm. This is not possible for all novice entrepreneurs and start-up firms, however, as these entities may lack the necessary resources or cash flow to make such a purchase.
Leasing therefore emerges as a more manageable option that spreads the cost across a predetermined period of time, while reputable firms such as Lease Car also help you to reduce and balance prices further with a comprehensive comparison tool.
The costs of maintenance and repairs can be crippling as a new business with little resources to keep the business running. But if you’re a little more established and can cope with the monthly payments then buying could make more sense. Leasing certainly isn’t perfect for all but can save you the time and upfront money you need to buy a business car.
Refresh and renew your vehicles.
On a final note, it is worth noting that vehicle leasing is underpinned by a similar business model that supports smartphone contracts. More specifically, vehicles are leased for a fixed amount of time (usually 24 months), after which you will be able to upgrade to a similar or superior model depending on the needs of your firm. This not only enables you to constantly refresh and renew your vehicles, but it also means that your business is not encumbered with a depreciating asset.
