If your business needs a vehicle, or a fleet of vehicles, you may be wondering what kind of financing options would work best for you. After all, purchasing a vehicle can be a serious drain to your cash flow – especially if you’re looking to purchase multiple vehicles.
Buying a vehicle outright means all accountability and expenses are on your shoulders. It’s also a large sum of money to have to pay in one go. Novated leasing and commercial leasing are alternatives that have a lot of advantages to consider before you commit to purchasing a vehicle outright.
Novated leasing is when a vehicle leasing agreement is made between an employee, employer and a finance company.
It allows you to make payments from your pre-tax earnings so that taxable income is reduced. Novated leasing offers a serious tax advantage since the payments usually come out of employees’ paychecks before money enters their account.
Additionally, novated leasing offers the benefit of having monthly repayments for your vehicle of choice that are generally lower than what you’d be expected to pay when purchasing a vehicle outright. You can also upgrade to newer models for less of a cost than you would when purchasing a newer model as well as having the flexibility of purchasing your novated lease or extending it at the end of your leasing agreement.
It should be noted too that novated leasing makes a wonderful incentive for high-performing employees. Maintain and attract the employees you want with novated leasing!
Commercial vehicle leasing is a great option for businesses that rely on a fleet of vehicles. For businesses of all sizes and industries, commercial leasing offers flexible leasing options and a wide range of vehicles to choose from. Whether you need a fleet of trucks or a few smaller vehicles, commercial leasing is a viable option.
The cost benefits that commercial leasing offers is great for all kinds of businesses, particularly for growing businesses that may not have the same resources that larger companies have. Most commercial leasing companies also offer the flexibility of vehicle modifications and maintenance services, as well as typically being more knowledgeable when it comes to commercial vehicles. Importantly, a good commercial vehicle leasing company will offer servicing in multiple locations, which offers convenience and efficiency for both business owners and employees.
ORIX is an internationally recognised leader in novated and commercial leasing. They offer fleet management and leasing options that’ll suit your business and your budget.
Contact Orix for more information today.