When venturing into the luxury car rental service, one of the main challenges faced by most business owners is the decision whether to buy or lease the vehicles in their fleet. This is a major decision especially if you have to remain competitive by ensuring that you have a wide variety of the latest luxury models available to your growing list of clients.
Let’s take a look at the 4 benefits of leasing as opposed to buying your cars.
Leasing does not require large down payments
One of the major benefits of leasing is that it does not require large down payments to be made in order to start using the vehicles. This is especially beneficial to someone who is just getting into the luxury car rental service and doesn’t have a lot of capital at their disposal.
In addition, low down payments mean that you will have more operating cash available which can be channeled to your marketing and customer acquisition.
Leasing requires lower monthly payments
When getting into the luxury car rental service, it’s important to understand the laws of depreciation value of assets. This basically means that assets depreciate in value over time and this becomes relevant to you as a business owner because luxury cars are known to depreciate in value pretty fast.
This becomes relevant in your lease payments because the payments are based on the depreciating value of the car which is commonly referred to as the residual value of the car. This makes these payments much lower as compared to those made when buying a car.
Leased cars benefit from the active warranty coverage
One of the major benefits of leasing especially if it involves a new luxury car is access to the active warranty coverage. Most high end models come with a warranty that stretches up to three years of course depending on the manufacturer.
This happens to be within the same time frame most leases are offered which is between one to three years depending on the dealer. If you are yet to figure it out, an active car warranty means you are likely to be protected financially in the event there is a mechanical defect during the warranty period.
Leasing guarantees value for money
Based on all the points we have highlighted above, you can comfortably conclude that leasing guarantees you value for money. As a luxury car rental service provider, leasing will ensure your clients have access to newer cars with the best and latest technology, safety and entertainment features.
This will make your business thrive and the added benefit to you is that the cost to you will be much less per month as opposed to the cost you would have incurred buying the cars.
At the end of the day, the choice between buying and leasing has to be considered very carefully by weighing the pros and cons of each option as well as looking at your long term business goals. If it makes financial and operational sense to you then you better go for it.