Car Leasing India

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How to choose the best fleet management system?

Knowing the exact location of where your vehicle and staff is heading to; whether it is on track or straying away from the assigned route can bring a big difference to your business. And, so that’s where a Fleet Management System (FMS) comes into play. But, the important question is how do you select the best fleet management system? Well, here are the following ways you can opt for the best-

 Getting a Customized option for your business type

This is the first step you should take while searching for the best FMS vendor. Your business requirements may vary depending on your business type. For instance, a logistics firm will look at cutting down on cost along with using fleet utilization to the fullest and so, they always look out for ways to reduce their fuel prices. That is why logistics service providers must search for a solution that is advanced enough to meet the industry challenges including the rising fuel prices and that provides insights into fleet operations.  Here, a telematics- powered Fleet Management System can help you to get details on fuel consumption and vehicle operation.  Using such FMS, fleet operators will be able to carry proactive measures and overcome the hassles in operation.

 Easy Access and Usage

    A Fleet Management System that is user- friendly and easy to access is what you should opt for! While sitting in the control center, the managers of the fleet must be able to monitor various parameters essential for business growth and success. And, so having a web based solution that allows you to manage and integrate data easily from several systems based on different locations becomes ideal. The FMS that you plan to avail should not carry installation and deploying charges and must be able to efficiently work with the existing system.  

 Performance matters:

It becomes crucial to keep the performance in mind while opting for a FMS. A great system provides you a panoramic view of the operation of your fleet services and the work force efficiency. This helps you to monitor over your fleets, driver behavior and cut down on manual labor. Also, opting for a high-performance solution will help you gain insights on the status of business and where you can focus on for further growth and profit maximization.    

 Real-time means real business:

Focusing on the system’s real- time capabilities is one of the most important factors while evaluating a Fleet Management System. Those managing the fleets should be able to monitor how the operations is being carried in real-time. The Fleet Management System you opt for should be able to monitor the following parameters-

·        The location of the vehicle

·        The behavior of driver

·        Log activities and work status

·        Alerts on accident & incidents

·        Cargo Safety

·        Delivery Status

·        Fuel Consumption

·        Engine Idling time

 An effective Fleet Management System is one that is flexible enough to fulfill the requirements of a fleet operator.  For e.g. If you decide to increase the number of fleets, the FMS should be able to easily accommodate the new vehicles without you spending on additional infrastructure.  A good FMS will not only be able to tackle those obstacles in an effective manner, but it will also increase the Return on Investment. Implementing a user-friendly Fleet Management System will help you increase the efficiency of the fleet services and workforce.

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Tips On Buying A Fleet Car

Gone are the days when fleet cars used to be base model white-painted sedans. Times have changed and with fleets being more varied, buying an ex-fleeter is an attractive proposition these days. If one does their homework, then buying fleet cars can have many advantages like cheaper rate of acquisition, positive maintenance records, known upkeep history etc.

So, here are some tips that can help you make a better decision while buying fleet cars:

1)      Keep an open mind while checking vehicles for features:

When deciding what parameters and features your fleet vehicle must have, try not to eliminate viable alternatives. Consider the scope of what the car or truck will be used for, what options are necessary and where there might be some breathing room. Having an open mind can lead you to get a great deal.

 2)      Know the history of the vehicles

One needs to go through the service records of the vehicle in order to understand the kind of treatment given to it while in service. It is also good to know the fleet manager who previously managed the fleet to which the vehicle belongs. A good fleet manager always ensures that the vehicles of his fleet are well maintained.

 3)      Drive all the options first

When in the deciding phase, try and test all the options on your list by taking the vehicles for a test drive from a nearby dealership. Then you should accordingly evaluate each vehicle on various factors unique to your business purpose and factors like comfortability, safety, fuel efficiency etc.

 4)      Check for the best pricing

Once your list is complete and the vehicles are ranked accordingly, it is time to hit the phones or jump online for quotes. Don't be afraid of going outside of your area or region to see what kind of pricing you can get. Let the fleet sales representatives know exactly what you want and see what they can do. Don't let the invoice price deter you from asking for a better deal.

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Full service Leasing Costs Less Than Ownership

Leasing began as an inexpensive method to provide vehicle services for corporate businesses. Today, this service has expanded catering also to personal requirements. Car leasing is renting or hiring a vehicle for a definite time period at an agreed charge. When on lease, you only pay for the portion in use and not for the entire material. With a lease you’re paying for the depreciation of the car during those years rather than the whole vehicle cost. Today it is possible to get a fully customized service leasing deal with a predictable monthly payment.

How does leasing work? It’s simple. You simply choose the car model you want, finalize on the charge fee, confirm you order with the essential required ID documents, and voila! You have the car delivered at your doorstep.

Since leasing is an off balance sheet expenditure, it is fully tax exempted. With lower down payment, leasing has a lesser impact on cash budget. Corporate car leasing works especially well for businesses who can’t afford to heavily invest in buying cars and also maintaining them.

Besides professional financial aid and solutions, full service leasing also lets you avail a number of services that are vital to fleet management enhancing easy management and simple supervision of your fleet cars, such as: 24-hours assistance, attractive insurance packages, access to substitute cars, repairing and servicing checkups, fuel cards, maintenance and tyre services, fleet consulting and GPS monitoring. The financial benefits of a full lease are the tax advantages; it can make leasing a vehicle less expensive that owning one. A complete insurance taken in the client’s name insures the vehicle leased. The leasing company or seller is responsible for the maintenance and servicing of the vehicle during the lease period. Road tax is also usually included in the lease A door-to-door service is provided for delivery purposes as well as for repairs.

Certain fleet servicing companies provide risk free end of contract options and give you the option of buying the vehicle at the end of the contract. They don’t tie up any capital to get your required fleet. There are no hidden costs as they are always transparent about likely extra mileage. They take full responsibility for depreciation of the vehicle and resale value. Full service leasing sometimes includes hiring drivers through third party reliable agencies, as per the request of the client.

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What Is Car Leasing?

Leasing as the word describes ‘Lease: a contract by which one party conveys services, etc. to another for a specified time, usually in return for a periodic payment.’ , therefore, Car Lease is nothing but a contract of using a car for a fixed period of time at an agreed amount of money. When you lease something you only pay for the portion of that and not for the entire material. That “portion” you use is the amount of depreciation the vehicle will suffer over the course of your lease.

For those who want to try or experience driving new car every few year leasing is the benefitting option rather than buying as you could lease used as well as new cars.

Cars are normally leased for period between 2-5 years. Many people never buy cars because when you lease you will always have a relatively new car most likely always under warranty that is more than likely going to be reliable when compared to an older car. After lease is over you can purchase that car but often times it’s the residual value.

Car Leasing Services

1.   Maintenance: Scheduled, unscheduled and running repairs.

2.   Door To Door Service: Pick up and Drop facility for services and repairs

3.   Emergency Services:24/7 emergency roadside break down assistance

4.   Insurance: Full coverage in case of an accident

Benefit of Car Leasing

Car leasing benefits both sellers and buyers as leasing generates income from a vehicle the seller still owns and will be able to lease again or even sell it at market price.

And to Buyers: One of the most beneficial things is that you can swap your lease in middle of the tenure.

Benefit of tax, you can claim the entire lease rental as an operating expense in the Profit & Loss Account thereby enjoying a higher Tax benefit.

Benefit of funding, Helps keep your cash flow in check as you avoid paying hefty up-front charges. Vehicle purchases are recorded as debt and reduce available cash, leases are treated as operating expenses and hence your protect balance sheet

Often people get confused between Car Loans and Taking Car on Lease but leasing a car is more beneficial than taking a car loan as you Maintenance, Payments and Tax Benefits are more in car leasing than in car loan. When bank loans a car the owner of the vehicle is liable for all costs and maintenance, and loan repayments increases your expense and when it comes to tax, there is no tax benefit associated with loan.

In India, many companies give cars on lease, due to its beneficiary nature it’s a successful business and run by many entrepreneurs today. If you are a large corporate, an SME or a self-employed professional, leasing your company cars makes good business sense. Luxury Cars, sports cars are mostly leased as only a portion of their High value is supposed to be paid.  Be it small companies or big entrepreneurs many Indians are turning towards leasing a car and not buying it. Though there are always two sides of a coin, but benefits are seen more than criticism.