Whether you’re a small sole trader delivering fruit and veg or a huge multinational tech company with a large board of directors, there’s one thing that you’ll have in common, the need for transportation.
No matter what your core business is, we all need to get from A to B and how you decide to transport your staff or goods can have a huge effect on your balance sheet.
If you’re thinking about how you can streamline your processes and make managing a fleet of vehicles a lot easier, you really should consider leasing.
To find out more we decided to catch up with Steve Rayner, MD at Joe Duffy Leasing.
Joe Duffy Leasing is a standalone contract hire and fleet management company offering expert advice and mobility solutions to Irish businesses. Here are just some of the reasons why they recommend leasing over buying, especially in the Irish market.
Leasing is a simple and effective way to make sure that your company is only using the best vehicles. Of course, this is good for your reputation, but it also improves your staff’s safety as they avail of all the new safety technology.
“There’s no better maintained car than a leased car because we cover all aspects of it,” Steve explains. “It’s a much safer way to operate as well and make sure that all the work is done by a reputable dealer.”
And it’s not just cars. Steve explains that you can lease all types of vehicles to suit your needs.
“We have leased everything from motorbikes to Porsches,” he explains. “We cover lots of small commercial vehicles and large commercial vehicles up to 3.5 tonnes. We also do a lot of high value director’s cars. It’s a real mix between commercial vehicles, passenger cars and premium cars.”
We all know that in the world of business, the bottom line is what really matters. Leasing your vehicle fleet is a great way to control costs as you know exactly what you will be paying each month.
“When companies work with us they choose the vehicle that suits their business needs and they let us know how long they want to keep it for,” Steve explains. “We also factor in the mileage they will be covering every year which allows us to calculate how much that vehicle is going to cost them over the period of use. They are only paying for what they use and the vehicles full value isn’t sat on their balance sheet”.
“It’s then very easy for them to budget how much that vehicle is going to cost them over that period of time because it’s a fixed cost.”
On top of that, vehicle leasing eliminates nasty financial surprises by discussing total cost of ownership from the outset. If one of your vehicles gets a replacement tyre for example, the cost of repair is already covered by your lease.
“When using capex to purchase vehicles people don’t take into account the total cost of ownership,” Steve explains. “Quite often they don’t consider how long they are going to keep it for. If you don’t know how long you’re going to keep a vehicle then there’s no way of knowing how much it will cost you because you don’t know what it is going to be worth in the future.
People also don’t think to ask, how much will this vehicle cost to maintain or how much do replacement tyres cost. Instead, they just buy a vehicle often lured by upfront discounts and try to deal with the costs as and when they arise which in some cases can be quite significant.”
When running a business you need to focus on your mission, not your vehicle fleet. Countless entrepreneurs and CEOs spend too much time worrying about vehicle maintenance when they could simply lease instead.
“It takes the hassle away from the company so they can focus on their core business,” Steve enthuses. “If you’re dealing with multiple vehicles, the administration can be a headache especially with commercial vehicles as they need to be tested every year. Even just things like road tax and raising PO’s for services can be very labour intensive. Leasing frees companies up and let’s them focus on their core business instead of spending time managing their fleet. It’s a good piece of mind for people as it deals with the buying, the selling and the maintaining of the vehicles all in one go.”
Leasing is becoming increasingly popular in Ireland as more and more people start to recognise the benefits.
“Over the last few years we have noticed a lot more inbound enquiries,” Steve admits. “People are being advised by their accountants and their other contacts who are currently leasing. More and more people are seeing it as a viable solution.
“From a company point of view, it’s great because there are no large deposits. One month advance rental is what we normally take. They don’t have to part with a lot of capital to get people into vehicles.”
If you would like to get free advice on your business’s mobility needs check out the brand new Joe Duffy Leasing website. With an unrivalled customer experience, the new site has been designed with the customer at the centre. You can also contact Joe Duffy Leasing on 018647711 or email firstname.lastname@example.org.