Get the Best Deal on Business Leases
It’s not a secret — business car leasing offers several benefits over purchasing a fleet of vehicles. Business leasing allows you to conserve and control cash, better control your brand image, improve the balance sheet, enjoy business leasing tax advantages, as well as several other benefits. However, not all business leasing experiences are created equal.
If you’re looking to take advantage of the benefits of business leasing without the negative repercussions, make sure you know the following business leasing tips:
- Use a broker-dealer, like Carlease.com to get the best deal
- Make sure you have GAP insurance
- Choose the proper lease contract terms based on the needs of your business
- Ensure all lease vehicles are properly maintained and serviced
- Carefully read through the lease contract prior to signing
- Pay special attention to any Early Termination Fees
- Plan for the future with a lease contingency plan
Continue reading to learn more about each of the eight costly business car leasing mistakes and how to avoid them.
Get the Best Deal on Business Leases with Carlease.com
Some businesses make the costly mistake of simply going to their local dealership and requesting a car lease quote. This often results in the business owner paying much more than they need too. This is due to the fact dealerships can only obtain business lease quotes from their manufacturer's finance company, which may not always be the most competitive solution.
In contrast, Carlease.com deals with several independent finance companies and will shop around the market to help your business find the best business lease promotional deal. We’ll provide a world-class, high-touch customer service experience, which includes a delivery of the fleet to your business.
Tips for Getting the Best Business Lease Deal
- Start your business lease process with Carlease.com. You can browse all vehicles from all manufacturers on one convenient site.
- Carlease.com allows you to mix and match vehicles to create the perfect business fleet for your needs.
- Work with an experienced Carlease.com business leasing expert to understand all of your options.
GAP Insurance Protection for Business Leasing
Image c/o Canva.com
It can be extremely expensive if a leased vehicle is totaled and you do not have GAP insurance. GAP insurance protects your business in the event one or more of the leased vehicles are subject to an insurance write off — where the insurance settlement is less than the termination charge applied by the finance company.
In other words, GAP insurance kicks in when insurance provider pays the current market value of the leased vehicle, which is less than the amount you owe to the finance company. It's important to understand GAP insurance isn't included in most full coverage car insurance policies.
Tips for GAP Insurance for Business Leasing
- Review your business leasing contract to determine whether GAP insurance is included.
- Never go with your first GAP insurance offer. You may save hundreds or thousands of dollars — depending on the size of your fleet — by shopping around and comparing GAP prices.
- Don’t forget to speak with your insurance company and credit union about the availability of GAP insurance.
Choose the Right Annual Mileage for Your Business Lease
One of the top mistakes businesses make when leasing a vehicle is failing to choose the right annual mileage. When you sign your lease contract, one of the key stipulations is the number of miles you're allowed to put on the vehicle. In most instances, this mileage will be capped anywhere from 12,000 up to 15,000 per vehicle.
If your employees exceed this limit, you'll be charged a fee for every mile they go over in what is called an Excessive Mileage charge. Depending on the leasing company, this fee could be as high as .25 cents per mile, which will quickly add up into the thousands of dollars per vehicle.
Even those wildly popular "unlimited mileage" solutions may come with stipulations. As a result, it's imperative for you to read and understand your leasing contract. By doing so, you'll understand your mileage limits and potentially save yourself from thousands of dollars in additional charges at the end of the lease.
Avoid Excessive Mileage Charge on Business Leases
- Choose the right mileage from the beginning by working with your Carlease.com business leasing expert to structure the best mileage terms for your business.
- If you don't know the mileage, but expect it to be high; ask your Carlease.com expert about high-mileage or unlimited mileage leases. Always ask about any mileage restrictions.
- Schedule checkups on your fleet vehicles to determine which vehicles are nearing the mileage. Communicate the mileage restrictions to your employees and consider making them responsible for any overages resulting from non-business use.
Leasing a Business Fleet for Longer Periods
Image c/o Carlease.com
While most business vehicle leasing contracts will be two or three years, some companies also offer leases that can go up to four or even five years. If you choose a longer lease, you can expect a lower monthly payment.
However, it's vital to not choose a longer term simply because of the cost saving. It could actually cost you more in the end. You should always choose a lease that supports your business goals and initiatives, such as leasing cars for your top salespeople. Most importantly, it's best to avoid leasing a vehicle longer than the manufacturer's warranty because you could be stuck with a hefty repair bill.
How to Choose the Best Business Lease Term?
- Work with your Carlease.com business leasing expert to choose the best term based on your business needs.
- Plan ahead by considering your current as well as future business needs and initiatives.
- Don't be so quick to sign on the dotted line because of a promotion. If it doesn't meet your needs, a longer business lease could cost you more in the end, due to Early Termination Fees or lease transfer hassles.
Excessive Wear and Tear on Fleet Leases
Image c/o Canva.com
When you lease a fleet of vehicles, you're agreeing to look after them both cosmetically and mechanically. If you fail to do so, you could face a hefty fine at the end of the lease.
Every finance company operates a Fair Wear & Tear policy, which requires the leased vehicle to be returned in a condition relative to its mileage and age. Anytime a leased vehicle suffers exceptional wear and tear, you'll pay extra at the end of the lease.
Avoid Excessive Wear and Tear Charges on Business Fleets
- Make sure to have the vehicle serviced according to the manufacturer's suggested schedule. You should always keep maintenance records of all vehicle service performed.
- Have the vehicles cleaned prior to returning them. This shows the leasing company your business has cared for the vehicles.
- If your vehicle has suffered cosmetic damage, work with the business car leasing experts at Carlease.com to find a trusted and reasonable body repair shop.
The Small Print on a Fleet Lease Contract
Image c/o Canva.com
Since your fleet lease contract is legally binding, it's imperative for you to read and understand your lease prior to signing. It seems pretty obvious, but many business owners simply sign on the dotted line.
If you don't check the small print, you may learn you'll be charged fees you were unaware of. Most importantly, you could overlook terms and conditions that would compromise your ability to use the leased vehicle as planned.
Don't Overlook the Small Print on a Fleet Lease Contract
- If you have questions, do not hesitate to ask for more information. Your Carlease.com business leasing contract expert will be more than willing to review the contract.
- If another company’s business leasing professional is reluctant to discuss any item, encourages you to gloss over it, or promises you anything not in writing; you should be concerned. It always helps to have a second opinion, and the Carlease.com experts will be more than happy to review your contract to ensure you’re getting a fair or the best deal.
- It may behoove you to have a business partner or legal professional with you to review the paperwork.
Early Termination Charges on a Business Lease
Image c/o Canva.com
After you sign the fleet leasing agreement, you're legally bound to the contract for the term of the lease. If your business needs change and you need to get out of the lease, you'll have to pay an Early Termination Fee to break the lease.
While most business owners fail to pay this fee any attention, it can be significant, especially when you consider the number of vehicles you need. The alternative to the Early Termination Fee is to find another business or consumer to take over the lease.
How to Manage the Early Termination Fee?
- Pay attention to Early Termination Fees and be aware of the potential ramifications if you were to break the lease.
- Possibly create a preemptive plan for what you'll do in the event you must break the lease.
Creating a Contingency Plan
Image c/o Canva.com
In business, it's vital to think ahead. If you have a two-year lease, you should start making preparations for what you’ll do when you turn the fleet in by the end of year one. Failure to do so could result in your employees being left without a vehicle and unable to do their jobs. On the other hand, waiting until the last minute could result in you making a rushed decision and not putting the needs of your business first.
While the most popular models may be readily available; many specific makes, models, trims, and special features take additional time to acquire. Certain models can take anywhere from eight to 26 weeks, so it's best to plan for this potential time frame.
Tips for Planning for the Future
- Make a plan for at least a year prior to when the vehicles are due to be turned in.
- You may want to begin planning even earlier if your vehicles will require any special up fitting, logos, decals or customizations.
- Start working with your Carlease.com business leasing professional to create a contingency plan for leasing continuity.
Contact Carlease.com and Avoid Business Auto Leasing Mistakes
Whether you're leasing one or 100 vehicles for your business, the expert team at Carlease.com can help guide you through the process. Our business car leasing professionals bring decades of experience helping business owners from all sectors and sizes choose the best car lease for their needs.
We'll help you understand all of your options and navigate the terrain toward the best business car lease. It’s never too early to start planning for your first or next fleet lease of business vehicles.
Contact Carlease.com today to learn more about our easy, hassle-free business leasing process.