WHY YOU SHOULD CONSIDER LEASING YOUR BUSINESS VEHICLES
Do you need a vehicle for your business, but aren’t sure what to do? There are many things you may want to consider like finding the right make or model, organising fitouts, signwriting, finding reliable repairers, paying tolls or infringement notices and managing fuel expenses – the list goes on. How do you get the […]
Do you need a vehicle for your business, but aren’t sure what to do?
There are many things you may want to consider like finding the right make or model, organising fitouts, signwriting, finding reliable repairers, paying tolls or infringement notices and managing fuel expenses – the list goes on.
How do you get the best bang for your buck, whilst also reducing the time spent managing your vehicles? You can achieve very different outcomes depending on if you buy your vehicle outright or if you choose to pay monthly and lease.
BUYING YOUR VEHICLE
When you buy your vehicle, it can require a large outlay of cash. You are also paying for the entire cost of a vehicle upfront years in advance of getting the business benefits. You might have to take out a loan for the full purchase price and the vehicle will be
worth much less as it ages.
Often when companies own vehicles, they have increased maintenance costs associated with those vehicles as they age, so it’s
important to think about the total cost of your vehicle over time. There are other costs like Fringe Benefit Tax or the cost
of the person managing the admin of fuel expenses, servicing and paying infringement notices.
LEASING YOUR VEHICLE
You don’t need to own vehicles to obtain their full benefit. An alternative to owning is to lease your vehicles through a company like FleetPartners, one of NZ’s leading vehicle leasing specialists. Running a business relies on cash flow so with leasing, you don’t need to pay cash up front or a deposit.
Instead, you can keep your cash to invest in other parts of your business that will generate better returns.
You can even outsource all the fleet management aspects to the experts like FleetPartners.
HERE’S WHY YOU SHOULD CONSIDER LEASING YOUR NEXT BUSINESS VEHICLE:
Leasing gives you freedom to choose any vehicle make and model, what lease term you need (up to 60 months),
custom fit-outs and accessories.
• Fixed monthly payments Leasing provides the convenience of one monthly payment, including costs like registration, scheduled servicing, maintenance repairs and roadside assistance. This makes budgeting easy.
• Tax advantages and easy accounting Depending on your business circumstances, lease payments could be 100 percent tax deductible when treated as an expense. You could also get access to a line of credit so that you can be preapproved
to lease more vehicles quickly as your business grows. At the end of the lease term, you can simply upgrade to a new vehicle on
a new lease.
• Get ‘Big Business’ discounts FleetPartners purchase and organise the service of tens of thousands of vehicles and buy
millions of litres of fuel every year. With this national buying power, it can pass on discounts to customers, who will typically
save up to 15-20 percent on fuel, maintenance, servicing and repairs. This drives down overall running costs.
• Reduced admin = more time Save the time in managing your vehicles – whether it’s organising vehicle fit-outs, dealing with an accident or breakdown, finding a repairer, paying tolls or infringement notices, managing vehicle-related FBT or reconciling fuel receipts – FleetPartners can take care of all your fleet management needs.
• Get on the journey to carbon zero Do you want to reduce the emissions of your business with an electric vehicle (EV) but the high upfront cost is a barrier? You can lease an EV, pay monthly over a set term and FleetPartners will pass on the Clean Car Discount on eligible plug-in hybrid and electric vehicles, so you can get a lower monthly lease rate. See fleetpartners.co.nz/electric-vehiclepromotions
WHAT LEASE SHOULD I TAKE?
A Fully Maintained Operating Lease is most popular as you can consolidate most running and maintenance costs into one monthly payment. With flexible terms from 36 to 60 months, you get visibility over your costs and FleetPartners’ team manages the day-to-day for you. This includes maintenance, servicing reminders, repairs, registration, roadside assistance and more.
WANT A SHORT-TERM LEASE? LEASE AN EX-LEASE VEHICLE WITH EZYDRIVE
With EzyDrive, you can lease a quality pre-leased vehicle with all the benefits of a Fully Maintained Operating Lease. FleetPartners offer a large range of NZ new, well-serviced vehicles complete with 100-point mechanical check, and you can choose a term from 12 to 45 months. See fleetpartners.co.nz/ezydrive.
WHAT IF I OWN MY VEHICLES AND WANT TO LEASE?
You can release cash tied up in your existing vehicles with a Sale and Leaseback arrangement. Depending on the age of your vehicles and kilometres driven, FleetPartners can buy your vehicles from you at an agreed price, give you the cash and
then lease them back to you. This is a great way to get cash back into your business and reduce your exposure to vehicles losing value.
Vehicles depreciate as they age and can be costly to maintain. It’s not uncommon for a vehicle to lose half its market value within three or four years. Leasing gives you certainty on what your outgoings will be and outsourcing the management will save
you time, which is better spent on running your business. Go to fleetpartners.co.nz/biz to find out more.
FleetPartners leases are only available for business customers. Vehicles must be returned to FleetPartners at the end of the lease term, and excess usage and unfair wear and tear charges may apply. Credit criteria,terms and conditions, fees and charges apply. This information is general in nature and does not constitute financial or tax advice and does not take into account specific financial circumstances, situations or needs.