After around 6 years of concern and uncertainty regarding the future of businesses in Britain after the financial crash, things are now looking up for the thousands of small and medium sized companies as the economy rises back above the level it was in 2008. Not only have the conditions improved considerably, but with that comes increased confidence and along with it a bigger appetite for investment.
Business Car Leasing Could Save Your Company Money
The general mood has now significantly shifted from trying to survive into one of growth. But for many small and medium sized company’s one stumbling block remains in their way, and that’s the £6.7 billion in depreciating vehicle assets.
Recent market research conducted by Business Car Manager Magazine has looked into ‘the views, beliefs and perceptions of over 250 senior SME decision makers towards commercial vehicle ownership and leasing.’
Their results show that there are currently around 1.5 million vans and commercial vehicles (LCV’s) registered on Britain’s roads, with many of these being owned by SME’s using cash reserves or bank debt.
But with many of these vehicles needing replacing around every 4 years, the cost of ownership is proving unnecessarily large over this period of time, especially as it can be avoided with little different to the life of the vehicle. The difference is in the ownership at the end.
Although most of us will want a brand new vehicle after the 3-4 years of contract hire, many of us still insist on vehicle ownership. The market research showed that three-quarters of the SME’s asked said they wanted to own their vehicle, because it is within our nature as a nation to want to own the things we use, and this includes our cars.
But the magazine has found that ‘freeing up the capital lost through vehicle ownership has the potential to transform these businesses.’ The money saved can then go back into the business to reduce other debts, improve IT infrastructure or increase marketing among other things.
They also spoke to companies who were already using business car leasing for their company vehicles. The main motivation for over half was to avoid the up-front cost of buying, and a third of the poll cited avoiding depreciation as a major factor.
Overall the market research found that while many SME’s are already enjoying the benefits that business car leasing can bring to them, there are still far too many who are unsure or unaware of the options available to them when choosing cars for their companies day-to-day operations. But with more exposure and information coming out all the time, more and more businesses are realising the potential effective leasing can bring to them.
Select Contracts – Leaders In Company Car Leasing Services
At Select Contracts we provide high quality personal and business car leasing services for any make or model of car. All our vehicles come with free UK delivery from our national network of dealers and vehicle preparation centres.
For more information on our car contract hire services, please get in contact by emailing firstname.lastname@example.org or call 0845 6770 770.