Because most businesses are attempting to cut costs, leasing company vehicles has received increased attention. It is gaining popularity among businesses of all sizes to keep up with the most recent automotive technology and safety features. However, as with any business decision, there are various considerations when you lease to own cars in Singapore. So, if you’re trying to determine if leasing company cars is the best option for your business, keep the following attributes in mind.
1. Lease Specials
Lease specials are leases designed to increase auto sales. And to increase sales, automakers periodically offer lease deals on new vehicles, resulting in substantial customer savings. Lease specials vary across brands and automobile models. Additionally, to optimise the cost of a company car lease, it is crucial to comprehend the available offers on the various car models. Before making a final decision, check for hidden costs such as sales tax and registration fees.
2. Vehicle Type
Before settling for a company car lease for your business, ensure you obtain the exact model you require. Consider getting an affordable luxury vehicle if, for instance, you plan to use it to impress clients while transporting them to important meetings. However, if you need a vehicle for deliveries, you should consider a compact car or a minivan.
3. Vehicle Price
Understanding the amount to be paid during the lease term requires a comprehensive understanding of the vehicle’s cost. Typically, cheaper cars have lower monthly payments than more expensive ones. Additionally, this decision must consider the individual’s ability to meet the monthly lease payment on a corporate car leasing deal in Singapore. Evaluating available cash flows is crucial for making the right decision and avoiding late lease rental payments.
If you intend to lease a company vehicle, you should always consider the associated taxes. It may include deductions for business driving and sales tax, which are still applicable for leased cars. Therefore, renting a less expensive vehicle to save money is ideal.
5. End of Lease Options
Before signing a company car lease agreement, it is of utmost importance to comprehend the lease termination options. After the lease, the lessee can either return the vehicle, renew the deal, or purchase the automobile. And one can return the car at any time if the lessee can handle routine upkeep and maintenance. The renewal option will necessitate credit checks, as lessors will evaluate the lessee’s financial standing.
For corporate car leasing options in Singapore, visit Hertz Singapore today.