How Leasing Access Vehicles Can Help Improve Your Budgeting
Blog-October 4, 2022
Staying on budget is one of the biggest challenges construction and infrastructure projects face.
Recent studies have found that 85% of all construction projects experienced cost overruns¹, with the average project exceeding its budget by a minimum of 16%² – and the majority overrunning by 28%³.
While there are multiple factors that cause budget problems, a major contributor is the cost of strategic equipment and vehicles, such as vehicle mounted access platforms (VMAPs).
In this article, we explore how leasing these vehicles can provide greater financial control and help projects stay on budget.
How does leasing work?
Leasing is the perfect alternative to buying access vehicles. Many contractors don’t want to tie up their working capital to buy top-quality access vehicles outright. Access Lease provides a cost-effective way of sourcing the latest vehicles on a fully maintained basis.
With fixed monthly payments – including no hidden fees – contractors can lease innovative, market-leading vehicle mounted access platforms whilst simultaneously protecting themselves from financial uncertainty.
The ways leasing improves your bottom line
1. Spread costs and improve cash flow
The leasing model allows contractors to spread the cost of their vehicles over a fixed period of months, resulting in more affordable, individual payments. When comparing leasing to loan repayments on the same asset, monthly payments could be reduced by as much as 50%.
The fixed monthly payments are predictable and clear, enabling you to create a long-term budget without constantly adjusting to fit unexpected hiring and maintenance costs.
2. Tax savings
84% of businesses are currently transforming their tax and financial operating model to make savings⁴. Leasing enables this, because contractors can generally deduct the full lease rental cost from their taxable income – or claim capital allowances on the asset cost.
This makes leasing more financially efficient and helps contractors make their limited budget go further.
3. Inclusive maintenance and support
Maintenance is often undervalued in contractors’ budgets, yet it actually accounts for up to 30% of the total cost of a vehicle.
Leasing with Access Lease comes with inclusive maintenance and 24/7 support, meaning we take away all the headaches of ownership – from breakdowns, replacement vehicles, LOLERs, MOTs, servicing, and specific asset advice. It also reduces the likelihood of on-site breakdowns, as vehicles are rigorously tested before being delivered to the site and fully maintained to the highest of standards.
To discover how leasing our vehicles could help you, reach out to us today.