What’s the answer to this conundrum? One solution could be market evaluation. Put simply it’s a tool which can be used to select the most cost effective leasing rates and help contain, if not reduce, the cost of running your companies vehicle fleet.The principle of market evaluation is simple - save your company money on its vehicle fleet running costs by only ordering the most cost effective vehicle contracts from a panel of different leasing companies.The number of different leasing companies and sheer volume of quotations available to any company running a vehicle fleet in the UK today can seem bewildering. They all cite different “deals”, and profess to offer the most competitive rates for the same vehicle contract, but the difference between their rates is now wider than ever!
Part of the reason for this is that lots of leasing companies are under severe pressure to maintain competitive whilst tackling falling residual values and, in some cases, have experienced difficulty obtaining large-scale credit finance as a result of the credit crunch.Furthermore, without checking the “small print” it can often prove difficult to decipher the different quote formats and be certain that all the quotes you have are produced on the same basis i.e. the same payment profile, terminal contract mileage, vehicle specification, etc.By using a combination of different leasing companies for fleet vehicles, rather just relying upon one single supplier, fleet operators can be sure that they’ve secured the best market rate on every requirement, every time, and can feel safe in the knowledge that they’ve minimised their exposure to excessive price increases and fiscal fluctuation.
The capital lease option is one in which your company or business will be accounting for equipment that is being leased as if it were purchased. When the term of the lease expires, your company would most likely have to a pay a nominal amount to get the ownership of the equipment transferred into your company or business name. As far as accounting for capital lease option is concerned, the lease must per force be capitalized on the balance sheet, and it will directly impact your company in a number of ways including liabilities over an extended period of time as well as on assets like bank loans.
And the bigger your fleet, the bigger the problem, right? No, wrong. It could be if you were to do all the work yourself, but by using the services of a fleet management company, or a leasing company, they do all the “running around” so you don’t have to.
Remember this is a possible solution for you when your bank tells no. There may also be other program options available to you that your bank does not offer. It is always in your best interest to look around to find the best deal for your particular situation.A Collateral Lease may be the best solution for you to get financing quickly if you need the equipment now to get the job done
Want to find out more about car finance companies, then visit my site on how to choose the best finance for your needs.
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Tags: auto leasing, car leasing, Credit, lease, leasing, leasing a car, leasing cars, vehicle leasing