So your company needs a car; what do you do? Traditionally, you would involve the finance department and assign them the responsibility of freeing up cash for the purchase of a new or used car that may meet the company’s present demands.
Subscribing to an automobile for business purposes is uncommon, particularly in Africa. Business owners typically wait until they can afford them or try to obtain a loan to purchase one. What if there was a less expensive method to buy a car without breaking the bank at all?
Getting a car subscription for your business might provide you with a lot of advantages. Let us go through a few of them.
Increased cash flow
Electing to buy a car outright could have a significant impact on your cash flow. This would likely be a substantial liability on the balance sheet and might have an impact on your capacity to access further credit facilities when required.
However, subscribing to a car needs significantly less money upfront, and in the case of MAX subscriptions, zero upfront payment and allows you to budget for a fixed cost over a pre-determined length of time.
This implies that your balance sheet will not only seem better but your cash flow will not be strained by paying out large sums of money. It allows the money that would have been spent on the automobile to be utilised for other critical aspects of the business.
Increased safety features and fuel economy
The reliability, durability, and exceptional fuel efficiency of driving the latest models rather than an old or used car can benefit your organisation and employees. This reduces your expenditures as well as your charges, such as fuel and engine oil.
In comparison to an old or used car, an energy-efficient or eco-friendly vehicle should save the company significant amounts of money. Furthermore, if the worst should occur, your driver(s) will be the most protected with the safest vehicle features available on the market.
Maintain Your Competitiveness
With an auto subscription, you can stay competitive in the long run since as the car ages, added services such as regular maintenance, health insurance, as well as vehicle insurance, offered by subscription services, can keep your car in high-performing condition for a longer period.
Approval is easier to get.
You’re surely aware of how difficult it can be to obtain a loan from a bank, with piles of paperwork, and even then, you won’t know if you’ve been accepted or refused until seven days later, and in some circumstances, even longer. There is no such red tape with leasing. For instance, from start to finish, the process of getting a car subscription from MAX can be over within 2 days.
As the price rises, it becomes more desirable.
The greater the price of the car, the more appealing a subscription is because if you need extra cash each month, it allows you to do so. You also get to buy the car after the lease.
Depending on the sort of lease you signed, you can do this for multiple vehicles depending on the company’s needs, without hurting the business financially.
When compared to car ownership, car subscriptions are a more appealing option for businesses, since they provide convenience, flexibility, and a low level of commitment. The buyer saves money by avoiding the high upfront cost of an automobile, as well as the numerous hidden costs of ownership.
Subscriptions also avoid the time-consuming and paper-intensive procedure of making a one-time purchase. Customers do not need to be concerned about maintenance, inspections, locating a reliable technician, or purchasing parts.
An additional benefit for businesses, particularly when it comes to car subscriptions rather than purchases, is that these subscriptions are tax-deductible, and firms avoid the danger of increasing wear and tear expenditures. Furthermore, with structured monthly subscription fees, funds that would have been spent on a purchase might instead be employed as working capital for the company.
