To buy or to Lease? The Pros and Cons of Procuring a commercial Car
Business sentiment in the UK has fallen in recent weeks, with firms in the IT sector particularly badly hit. Confidence among these ventures has fallen by a staggering 23% since the Brexit vote, and this is reflective of a general malaise that is impacting on all industries and sectors.
This is forcing many businesses to consolidate their spending, while making pain-staking decisions when deciding whether or buy or to lease in the current market. This is particularly relevant when investing in a commercial car or fleet, as this can be a costly exercise that requires careful consideration.
The Cons of buying in the current market
Of course, the current economic climate represents one of the biggest arguments against buying a commercial car or fleet. After all, this requires a significant, up-front investment, which your company simply may be unwilling to commit to until the economic landscape improves. There are other risks too, such as the perceived burden of ownership and the additional maintenance costs that this brings. Altogether, the cumulative cost of buying and maintaining a commercial fleet is likely to deter a number of companies at present.
When you also factor in fluctuating fuel and servicing costs, the challenges associated with owning a vehicle may seem simply too difficult to surmount at present.
What are the Pros of buying a commercial car for your business?
Before you dismiss this notion completely, however, there are actually a number of benefits available through buying a commercial car or fleet. This is particularly true at present, as dealerships such as Shelbourne Motors compete to offer viable deals on premium car brands such as Toyota. This significantly reduces the cost of buying a commercial car, while also offering other incentives such as trade allowances and discounted prices. Also, ownership of a commercial fleet enables you to utilise this how you wish, leaving you free to brand your vehicles and turn them into impactful, mobile marketing tools.
Buying may also improve your cash flow going forward, as it negates the need for financing and recurring, monthly repayments.
The Last Word
Overall, there are clear pros and cons to both buying and leasing a commercial fleet in the modern age. The key is to make a decision based primarily on your own personal circumstances, rather than simply prioritising the wider, economic climate. This will ensure that you make the choice that is right for you, regardless of the external economic factors that will continue to fluctuate over time.