Over the last decade, shuttle bus rentals have become a mainstream trend, with more and more companies choosing to lease vehicles instead of buying one. The shift towards renting is grounded on the simple logic: large businesses need shuttle buses often, but make every effort to avoid all the hassle and high costs associated with owning a fleet.
In reality, laying out a hefty sum for buying a vehicle fleet is out of the question for many companies. Like most things, leasing boils down to money, however, cost-effectiveness is not the only benefit brought by this form of financial agreement. Below are the key points that explain why renting a fleet of shuttle buses is more advantageous than buying one.
Higher-Priced & Better-Equipped Models for Less Money
In the modern world, the vast majority of things have a shorter lifespan, forcing consumers to replace “old” and buy new home appliances, electronic devices, and, of course, vehicles. It’s common knowledge that even for large and well-standing companies, a new car or bus might not be a good investment as new vehicles depreciate at lightning speed, typically losing up to 50% of the original price within 3 years.
Renting allows companies of all sizes to benefit from the use of the latest models at incredibly affordable costs and with no risk of losing money on amortization. It is especially important for big companies or universities with the ongoing need for shuttle bus services for students or employees. Recognized as an affordable solution, leasing provides safe and comfortable transportation on a daily basis without breaking the budget.
There is no dilemma here, with bus rentals, companies and universities can get newer and more advanced models.
No Running Costs
Typically, signing a 3-year lease deal comes with a full warranty, covering all maintenance costs and eliminating any possibility of extra expenses on repairs. The conditions may vary for shorter agreements, however, the standard practice is that all eventual wears and tears are the headache of the dealership, especially when big clients are in question.
Many companies decide to opt for an extended warranty, which allows them to totally avoid running costs, even those associated with tires wearing. Such a benefit is equally important for good-standing companies with big fleets and smaller businesses that have to budget, not to mention enterprises with the need for luxury executive coaches to attend conventions or VIP events. Luxury vehicles are incredibly expensive to maintain while their spare parts often cost a fortune.
Small or No Down Payment
It is hard to find a business that does not want to minimize the initial costs related to adding a new vehicle or two to the existing fleet. Well, renting shuttle buses instead of buying them is the right solution for those who want to completely avoid a down payment and save a lot of money.
Despite what many think, the nature of a lease is totally different from that of a loan, since the latter is the borrowing of money while the former is a rental agreement for the use of a vehicle (or any other equipment or appliance). So in contrast to buying a bus with a loan taken from a bank or credit union, renting it comes with a monthly payment that luckily cannot rival sky-high interest rates set by the aforementioned financial institutions.
The idea of using a new vehicle during its most trouble-free years and for a small portion of what should be paid in case of buying one is very attractive for every type of business. There is nothing surprising in the fact that more and more companies are looking to benefit from reliable shuttle bus services with their diverse vehicle parks. While certain renting options may include a down payment to make up for a higher mileage allowance or damage relief, these amounts are much smaller and not comparable with classic down payments for bus purchasing.
Serious Tax Benefits for Business Owners
Businesses that lease shuttle buses can enjoy significant tax benefits, which can vary depending on State and local laws and requirements. In many cases, electric vehicles are subject to additional tax relief. Anyway, there is no need to pay hefty sales tax in bulk within a month of purchase, which is the case with buying a vehicle. Renting shuttle buses means only paying taxes on the respective monthly payment.
Hassle-Free. From Start to Finish
Leasing has always been an easier and more convenient option. Indeed, the opportunity to use a higher-priced vehicle with all the bells and whistles and lower monthly payments is nicely complemented by a hassle-free process from the very beginning to the very end. When the contract expires or there is a need for a different shuttle bus model, the “old” one can be simply dropped off at the dealer.
For the ever-growing number of businesses, the choice between renting and buying a shuttle bus is not a challenge anymore. Numerous advantages of a lease are hard to beat, especially from the perspective of big companies and universities with a wide variety of ongoing transportation needs.