Corporate fleet leasing gives you easy access to the vehicles you need without having to purchase them.
Making the right financial moves in the competitive marketplace is essential for the success of your business. Choosing commercial fleet leasing over purchasing vehicles for corporate use can offer significant financial and practical advantages.
We can help you get your fleet off the ground with customized, flexible corporate fleet leasing tailored specifically to your needs and budget. Contact our team at Glesby Marks and experience our concierge fleet leasing service.
Key Advantages of Leasing vs. Owning Fleet Vehicles
Here are seven key benefits of leasing over purchasing when acquiring your commercial fleet vehicles.
Improved Cash Flow
Because commercial leasing arrangements require a smaller down payment, you can retain more cash on hand to manage core business activities. Maintaining adequate operating capital allows you to respond to business opportunities more easily and quickly. This can translate directly to improved market position for your company.
Reduced Impact on Your Financial Bottom Line
Leased vehicles are not generally regarded as corporate assets and need not be reported on the balance sheet as assets or debts. Instead, they fall roughly into the category of business expenses. This treatment of leasing vs. purchasing can have a real impact when it comes to tax time.
Fast Access to Vehicles
Commercial fleet leasing companies can acquire vehicles locally or from across the country quickly and easily to suit your corporate needs perfectly. This increased level of access can also lower your overall cost of leasing and can ensure that you receive the exact vehicles you want.
Greater Flexibility
You have two options when it comes to corporate fleet leasing: operating leases and capital leases.
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Operating Lease: Think of this like renting a car, but for your business fleet. You use the vehicles for a set period and make regular payments. At the end of the lease, you usually return the vehicles. Your company doesn’t own the cars and they generally don’t show up as assets on your balance sheet. This can mean lower upfront costs and potentially tax-deductible lease payments. Maintenance might even be included in the lease agreement.
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Capital Lease: This option is more like financing the purchase of the vehicles. While you make regular payments over a set period, at the end of the lease, you often have the option to buy the vehicles for a nominal fee, or you automatically own them. These leases are treated more like loans on your company’s balance sheet, meaning the vehicles are considered assets and you’ll record depreciation and interest expenses. This can lead to eventual ownership but might involve higher initial costs and more responsibility for maintenance.
Management Support for Corporate Fleet Leasing
Leasing your fleet through an established provider can also give you access to essential fleet management tools, including:
- Fuel management programs
- Driver and location tracking
- Fleet maintenance scheduling and reminders
- Vehicle records and logs overview
Outsourcing Routine Administrative Tasks
Property taxes and license renewals are the responsibility of the vehicle owner. By leasing rather than buying fleet vehicles, you transfer the responsibility for these ongoing tasks to the leasing company. This can save considerable time and stress on the part of your team and can ensure that this paperwork is managed properly and is submitted on time.
Improved Corporate Image
Maintaining newer fleet vehicles on the road can create a positive public perception of your company. By putting your best foot forward with dependable and attractive fleet cars and trucks, you boost your branding efforts to potential new clients and customers.
Concierge Fleet Leasing Service for Corporate Vehicles
At Glesby Marks, we specialize in corporate fleet leasing and management services for your company, including vehicle acquisition and leasing services, upfitting for fleet vehicles, and maintenance and management tools. Reach out now to speak with one of our friendly service professionals.