Buying cars for your business can be a very expensive affair. Buying a car requires a large amount of capital, which you may not immediately have to hand – and the vehicle will begin to depreciate in value as soon as you drive it away from the showroom forecourt.
There’s also the additional maintenance and repair costs, which can really add up over the lifetime of the car.
Instead of buying, have you considered leasing or renting a business vehicle instead?
Leasing or renting a business vehicle saves money
If you know that your business will require a car for a longer period of time, contract hire could be a good option for you. You hire the car for a set number of years and pay fixed monthly costs during the life of the contract; the leasing company cover any maintenance and service costs incurred whilst you’re using the vehicle.
Leasing a car means that you do not have to allocate a large amount of capital to your business vehicle but can instead make affordable payments, spread out over time. You also benefit from not having to pay expensive costs, and at the end of your contract you can simply walk away from the vehicle without the hassle of having to sell it.
Flexible hire: No more lengthy fixed contract
If leasing a car for a longer period of time is not really convenient for your business, then you may want to consider a flexible hire arrangement. Businesses which are less busy at certain times of year may find their leased vehicles standing idle, for example, and in this situation flexible vehicle hire may be more suitable.
Flexible hire arrangements, such as those offered by Mayday Vehicle Rentals, allow you to rent a car without committing to a lengthy fixed contract. This is perfect for businesses which require flexibility as it allows you to make decisions based on your present circumstances.
Such a programme might start at a minimum of 28 days and allow you to keep the vehicle for however long you like – you are usually only required to give a very short period of notice before returning the vehicle. Flexible hire vehicles enjoy the benefits offered by contract hires, as maintenance and service costs will be covered by the provider.
Mini-leases: The middle ground
Some vehicle rental companies also offer mini-leases. This is an arrangement that falls between flexible hire and contract hire, where you will typically commit to hiring a vehicle for a medium-term period – six months, for example. Again, as with a flexible hire, you will enjoy all the benefits of a contract hire and will not be responsible for maintenance and service costs.
Hiring helps identifying the right vehicle
There are other benefits to hiring a vehicle instead of buying. Many companies buy a car only to later realise that it’s not suited to the role for which it was intended – leaving them stuck with a vehicle that’s not suitable for their business. By hiring a vehicle, you can take advantage of the expert advice provided by a corporate hire specialist like Mayday, who will help you identify the right vehicle for your business and potentially save you money.
Whether you choose to lease, rent or buy, we wish you every success with your business.