Company car: all options compared
As an entrepreneur or fleet manager, sooner or later you are faced with the choice: how do we arrange mobility? Do you opt for buying, leasing for the long term, or more flexibility? The “company car” comes in many forms, and each form has its own rules. In this article, we list all the options and explain why flexibility is often the key to success in today's market.
The options at a glance
Before going into depth, it's important to distinguish the four most common forms of business driving:
- Buy: You purchase the car yourself. The car comes on the balance sheet and you bear the risk for maintenance and residual value.
- Financial Lease: You buy the car on installment. You are an economic owner (the car is on the balance sheet), but the leasing company finances the amount.
- Full Operational Lease: You 'rent' the car for a long period of time (often 48 or 60 months). The leasing company owns and arranges everything (maintenance, insurance).
- Short lease: Full Operational Lease, but with a short term. After the expiry of this fixed term, the contract becomes flexible and is easy to terminate.
Comparison table: Which shape suits you?
To make the differences clear at a glance, we have listed the most important features below.
Why Shortlease is often the best choice
In an economy that is constantly changing, many companies no longer want to commit to five-year stranglehold contracts. Shortlease is the perfect answer to this. It offers the security of an all-in lease contract, without the chains of a long term.
Here are the three biggest benefits of short leasing with VWP:
1. Maximum flexibility
Not sure what your order book will look like in two years? With short lease, your fleet moves with your business operations. You choose a duration that suits your situation. Is that period over? Then the contract will immediately become flexible. You can then simply cancel the contract, or just keep driving for as long as you want.
2. Ideal for temporary projects
Many organizations work on a project basis or have to deal with seasonal peaks. It's a shame to lease a car for 48 months if you only need it for six months for a specific project or secondment. Shortlease closes the gap between expensive daily rent and long lease contracts.
3. Risk-free testing
Are you considering the switch to electric driving, but are you unsure about the range in practice? Shortlease is the perfect way to try out an electric vehicle (EV) in your daily routine for a few months. Don't like it? Then you simply exchange the car for another model after the run time.
Conclusion
Although buying or long-term leases can be advantageous in specific cases, short leasing wins in terms of risk management and adaptability. You drive a representative, young car with all services included, and after the run time, you're not stuck with anything for a long time.
Do you want to be mobile right away without long-term obligations? Check out our current offerings and discover how VWP Shortlease keeps your fleet flexible.
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