More than just home loans
Fully maintained operating leases are a viable option for any business with a number of essential work vehicles, whether they are cars, delivery vehicles or heavy transport,
Properly constructed operating leases make the management of company vehicle fleets smooth and simple;
An operating lease is a rental, the leasing company owns the vehicle, and rents it to your business over a contracted term between 12 months and 60 months.
You choose the vehicle that’s right for your business, and decide the appropriate lease term, based on the number of kilometres that you expect the vehicle to travel each year.
The leasing company includes registration, insurance and tyres for the lease duration. It also includes servicing and maintenance. These are included in the agreed monthly lease payment. There are usually some restrictions on where servicing can be carried out, fuel purchased etc., as the leasing company will have negotiated pricing on parts, servicing and fuel.
The leasing company will provide the quote, order the new vehicle and have it delivered to your business.
At the end of the lease term, you just hand back the vehicle to the leasing company.
Correct estimation of annual kilometres travelled is absolutely critical, and it’s preferable to err on the conservative side as the leasing company bases its rental on a calculation of the vehicles value at the end of the term. It will also affect the provisioning for tyre replacement, servicing etc.