Benefits of vehicle leasing

With rising living costs and soaring petrol prices, it’s no wonder more companies are choosing vehicle leasing over ownership.

Sonja Boon, General Manager of Thyme Fleet, a proudly South Australian owned and operated business, says one of the main incentives of leasing is that companies can invest their capital back into growing their business.

“Purchasing a new vehicle requires a hefty amount of funds. Even if the money is borrowed, the vehicle will appear on the company’s balance sheet, thereby reducing its capacity to borrow for core business purposes,” Sonja says.

“Instead of buying a vehicle outright, the company can utilise its capital base for running its core business and maintaining healthy cash flow,” she says.

Here are some other top reasons to choose leasing:

1. Loan approvals are not required for leasing and at the end of the lease term, the vehicle is simply returned to the lessor. This removes the issue of having to sell your vehicle and deal with bankers and car dealers.
2. Lease fees are expensed in full as they are incurred, reducing payable income tax, whereas vehicle ownership allows depreciation and interest deductions which are less per annum but run over a longer period, thus more tax would be payable initially under vehicle ownership.
3. The repairs and maintenance of vehicle ownership are the responsibility of the owner. In contrast, depending on the terms of lease agreement and type, the responsibility for repairs and maintenance is covered. This will aid cash flow and save considerable administration time for the lessee.
   

Sonja says Thyme Fleet’s top-of-the-line vehicles, which include Nissan X-Trail, Ford Ranger, Isuzu D-Max and Toyota Prado and HiLux, are rotated on a minimum 36-month roster, ensuring businesses maintain impeccable public appearances.

“For branding purposes, companies who choose a lease with us are always in a new car which looks great when they are on the road visiting clients. “It’s also peace of mind knowing the vehicle is being managed and you don’t need to worry about unexpected costs or repair bills. This gives you more time to concentrate on growing your business.”