Moving into Phase 2 has been a significant step forward for businesses in Singapore to adjust to the new normal and get back on their feet. With the coronavirus outbreak in our midst, it has become more crucial than ever for businesses to adopt cost-saving strategies to stay afloat in these unprecedented times.
As Singapore’s economic recovery in the months to come is expected to be slow and challenging, it is important for businesses to adapt and minimise their operational costs. For many businesses, acquiring resources such as vehicles are essential to support their operations, especially with the rise in demand for deliveries due to COVID-19.
While buying these vehicles may seem like the best option to guarantee complete ownership, businesses can also explore alternative solutions such as vehicle leasing. In this article, we cover the benefits associated with vehicle leasing and why you should invest in it for your business — especially during Phase 2.
Firstly, the most obvious benefit is the significant financial difference between purchasing vehicles for your business and leasing them. Especially for new businesses that may face difficulties raising capital in acquiring resources, vehicle leasing is a cost-effective option that involves fewer upfront costs and lower monthly payments as compared to purchasing them.
As mentioned earlier, while most businesses have resumed operations in Phase 2, the looming economic recession makes it prudent for companies to minimise costs and identify areas where cash flow can be conserved. With less downpayment and monthly payments required for commercial vehicle rental, businesses can maximise profits while saving capital for other more important expenses in maintaining the business.
If you’re just starting a new business, vehicle leasing is also a safer financial decision that can help you contain your initial costs so that you can focus on maintaining and expanding your business.
Fortunately, most vehicle leasing companies in Singapore offer regular free maintenance as part of the leasing contract, keeping your vehicles in their best shape at all times.
If a situation arises where your vehicle needs a quick fix, our team at ETHOZ will take care of the repairs for you, while also providing you with a replacement vehicle while the repairs are underway. We also work to your convenience to offer you a maintenance schedule that works best for you, so you can rest assured that any unforeseen repair works can be done quickly, minimising the impact this has on your daily operations.
Leaving the responsibility of your vehicle repair woes to a leasing company can help you save time and additional costs on looking for a solution yourself. Choosing to lease your company vehicles will give you peace of mind, knowing that any problems you face with your vehicles will be attended to by an experienced team from the leasing company. This can guarantee the performance efficiency of your vehicles at all times and free up the time and cash flow for other important aspects of your business.
Although car dealerships are operational in Phase 2, with COVID-19 in our midst, it is difficult to predict with absolute certainty what is in store for the automotive industry in the future. If you’re a business that requires vehicles as a primary part of your business functions, leasing your vehicles will help you remain competitive in the long term — especially in a post-COVID 19 economic climate.
Firstly by choosing commercial vehicle rental for your business, you have the added flexibility of choosing the vehicle that best suits your company’s changing needs with the added option to upgrade to newer models as your business progresses.
However, if you have committed to purchasing your own vehicles, this option may not be available and you may not be able to upgrade as and when you would like to without incurring exorbitant costs. Given the current economic climate, choosing to save on such costs will become especially beneficial for your business in the foreseeable future. Similarly, once your leasing period ends, you can simply return the vehicle to the leasing company without the added worry of selling or disposing of this asset.
As Singapore slowly deals with the repercussions that COVID-19 has had on our economy in Phase 2, businesses are seeking new ways to cope with this challenge. Fortunately, for businesses that are looking for cost-effective options to acquire company vehicles, there are car rental companies in Singapore that can help you out with this. At ETHOZ Vehicle Rental, we have a dedicated support team to help you through this period.
Not only will we work with you to understand your needs and limitations, we are also able to offer you customisable options that will best match your requirements. If vehicle leasing is an option you are considering for your business, simply contact our team at 6654 7773 to find out more!