Businesses that require employees to travel for meetings and appointments understand the importance of convenient and efficient transportation. While owning a car is beneficial, Singapore's high Certificate of Entitlement (COE) prices and vehicle ownership costs make it a financially challenging option. This is where corporate car leasing comes in as a viable solution. It allows businesses to acquire vehicles for a predetermined period through fixed monthly payments, with the car being returned at the end of the lease term. Corporate car leasing in Singapore has become increasingly popular due to its numerous benefits for businesses of all sizes. Let’s delve deeper.
1. Cost Savings
A key reason for businesses to consider a corporate car lease is the opportunity for significant cost savings. Purchasing vehicles outright demands a large upfront payment, especially when involving multiple vehicles or high-end models. This can strain the company’s cash reserves and reduce funds available for other essential business operations. Moreover, the upfront cost of acquiring vehicles may hinder the company's financial management, potentially causing cash flow issues.
On the other hand, corporate car lease typically includes regular maintenance and allows for consistent payments spread over the lease term.
For businesses that depend on daily car travel, Sime Darby Services' corporate leasing package offers a well-maintained fleet without hidden costs, eliminating concerns over wear and tear from heavy use or major repair expenses.
2. Access to High-Quality Vehicles Access to Newer Vehicles
If direct purchase of a business vehicle isn't feasible, some companies might consider opting for a second-hand car as a more budget-friendly alternative. However, this potentially limits access to newer models and their latest safety features.
In contrast, leasing a corporate car offers businesses the advantage of driving newer vehicles equipped with advanced safety features, covered by a manufacturer's warranty. It also comes with regular servicing by authorised dealerships to ensure premium fleet maintenance for businesses. With well-maintained, up-to-date vehicles, employees enjoy improved safety and reliability while projecting a professional and trustworthy image.
3. Flexibility to Meet Business Needs
Corporate car leasing in Singapore serves as an attractive option for businesses with varying transportation needs, offering tailored corporate lease solutions for specific requirements. Thanks to the flexibility, businesses can adjust the number of vehicles, the lease duration, and the types of vehicles in the fleet. For instance, a rapidly expanding tech startup might initially lease five vehicles to fulfil its transportation requirements. As the company grows, it can effortlessly modify the lease agreement to include five additional vehicles or upgrade to models with more sophisticated features.
4. Peace of Mind
Besides hassle-free fleet management, another significant advantage of a corporate car lease is the peace of mind it provides. Depending on the lease agreement, the lessee will be given the option to extend the lease or upgrade to a new vehicle at the end of the term. This means businesses are not locked into long-term commitments and can adjust their fleet as needed to meet changing demands.
Moreover, leasing eliminates the risk of depreciation, a major concern when owning vehicles. As a car’s value decreases over time, owners may incur losses when selling it. However, with a company car lease, this risk is borne by the leasing company, leading to effective depreciation management for corporates.
A company car lease is ideal for businesses seeking a cost-effective and flexible mode of transportation. Here at Sime Darby Services, we take pride in offering a wide variety of car leasing solutions, featuring versatile lease terms and affordable packages. Contact us to experience a hassle-free corporate leasing process.