There are lots of unnecessary expenses that can be cut down the businesses in order to increase their profits. A number of unnecessary expenses are there that can be avoided by the business organizations which can add profits to its accounts books. Businessmen often neglect this type of trick for boosting the profits of their company. One of the most latest and the secret ways to add profits is to look for the business cars on lease. A lot of transportation companies are there which offer this type of rental services. The companies can hire the cars on lease for the business travelling needs rather than investment in the new cars.
Business contract for car hire
Buying the luxury car models can be an expensive affair for the business. Sometimes, it may have to invest in more than one car. So, it is better to invest in the luxury car for hire from the best lender. Some of the lenders offer national car leasing in which the ownership remains with the lender of the car. Lessor can take an advantage of travelling in the leased car for the period mentioned in the lease agreement. In this type of lending system, all types of risks and rewards related to the car are associated with the lender. Hence, the borrower can remain on the safer side and save the money.
Determination of the monthly rentals
If you are getting the cars on lease for the business, you have to agree on a monthly rental payment. The rental amount depends upon:
- Cost of the car
- Applied rate of interest
- Taxation on the car
- Residual worth of the car
- Profits which can be gained by the lender on the car
- Mileage of the car
So, you can make a fair comparison between these aspects of the car to decide the rental amount of the business car. You can get Alexander Stone Guide for the monthly rent of the car taken from Alexander Stone.