Instead of purchasing several vehicles, getting a company car lease is an alternative but cheaper option. Through this service, you wouldn’t have to worry about the hassle of maintaining them. The other benefits of using this are better safety for your employees, fewer expenses, and sparing you the trouble of dealing with depreciating vehicles.
If this is the first time the company is getting a long term car lease in Singapore, you may be unaware of the process involved. It is a simple process. First, you choose the type of vehicle to lease. Second, you negotiate the terms and conditions of the plan. Lastly, you sign the forms and wait for the delivery. These will be explained further in the article.
Here is everything you need to know when you choose a company car lease. Continue reading the article for more information.
Everything You Need to Know When Choosing a Company Car Lease
Choosing the Ideal Vehicle
The first step in choosing a company car lease is figuring out which type of vehicle to use. There are several factors to consider when picking which one you and your employees will use. For example, going for an SUV or other similar vehicles is an ideal choice for companies who will be travelling in groups. Additionally, this kind of transportation can serve as a carpool service.
Besides the previous factor, listed below are some other things you need to consider:
- Fuel Consumption
After deciding on the type of vehicle, you should check out the types of packages your provider offers. Some of these can be insurance, repairs, and accident management. Additionally, this step also involves determining the duration and the maximum mileage. Are you going for a monthly car leasing plan? Will you be using the cars every day? These are some of the questions you need to answer which can help you decide on the details of your agreement.
Getting an Estimate
Your provider should be able to give you an estimate after you decide on the type of vehicle to lease and after giving other essential information. Don’t forget to stay within your budget. Feel free to modify the details of your long term car lease. Some of the things you can do at this step are as follows:
- Add or remove package deals
- Switching vehicle type
- Increasing or decreasing maximum mileage
- Duration of the plan
Don’t forget that depending on your provider, you may need to work within a maximum and minimum duration of a company car lease agreement. Some can only last a year. Others can go on for up to five years.
Your provider will most likely ask the company to go through a credit check since monthly car leasing fees will be a part of the deal. If you are unfamiliar with this process, you will simply be sending the necessary files to one of their financial partners. They will check the credit rating of the business.
A credit check ensures that the business can fulfil the monthly payments of a company car lease agreement.
Finalising the Agreement
After checking your credit score, you can finalise your order for a company car lease. Don’t forget to read through the forms carefully. Ensure that every detail is correct and that you are happy with the deal. If you have questions, feel free to contact your provider for clarification
Never skim through the forms, as you put yourself at risk of missing crucial errors in it. If you’re the kind of person who doesn’t read the terms and conditions of anything, you should avoid doing the same for this agreement.
After reading through the agreement forms, sign them and wait for the next step.
The final step in beginning your company car lease plan is delivering it to your establishment. How long it takes depends on several factors, such as availability. However, if the vehicle is already in stock, it can take only a few weeks before it arrives.
Now that you know the steps involved in a long term car lease, you need to know a few tips. These can help you avoid potential problems which can happen while ordering or when the plan expires.
Continue reading this article for three tips to help you when ordering a company car lease.
3 Tips to Consider Before Ordering a Company Car Lease
Pick an Approved Service
First things first, ensure that the provider you will be dealing with has the necessary qualifications. Without them, you don’t have the assurance that the company car lease plan you’ll get will be worth the money. Additionally, the vehicles that you will be renting may have defects. The following are some of the things you need to check with a rental car provider before doing anything:
- Customer reviews
- Contact information
Get an Accurate Mileage Estimate
Another tip when getting a long term car lease in Singapore is to get an accurate estimate of your mileage. Your provider will be using this information to provide you with the pricing of your monthly payments. Additionally, it will be part of the vehicle inspection at the end of the agreement. Failure to be honest with your mileage can result in extra charges from your vehicle provider.
Set a Realistic Budget
One crucial tip when getting a company car lease agreement is to establish a realistic budget. Companies shouldn’t overspend on vehicles, especially when they will only use the transportations a few times a week.
Don’t forget to set a contingency budget if unexpected costs come up. It is always advisable to be ready for any possible changes. However, keep in mind that this money is to be used only when emergencies arise.
Getting a company car lease is a cheap alternative to consider instead of purchasing vehicles. The process is simple. You choose your ideal transportation, get an estimated price, pass the credit check, and sign the agreement forms. If no problems arise throughout the process, you and your employees will get to enjoy quality vehicles for several years.
Aside from companies, myCarriage offers weekend car rental services in Singapore. Visit their website for more information.