Kilometre-dependent leasing: advantages and disadvantages

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A standard operating lease is a fixed instalment over the entire term of the agreement. Leasing by kilometers is completely different - here the installment changes depending on the mileage of the car. Get to know its specificity and check if it is a beneficial solution for your company.

The lease installment of a standard offer is usually unchanged (only the proportions between the capital part and the interest part change). This is a big problem for entrepreneurs who are struggling with temporary stoppages, because standing car in the car park means that the company does not earn money. However, this is not very important because the lease instalment has to be paid. It is different in the case of leasing based on a kilometre.

Do you drive less? You pay less

The principle of kilometre-dependent leasing is simple: the less you drive, the lower the lease instalment. It is worth knowing that it consists of a fixed part (equal to the percentage part) and a movable part calculated on the basis of the mileage.

When signing the contract, the entrepreneur declares the estimated annual mileage and on this basis the rate per kilometre is determined. If it turns out that the forecast is lower than declared, then the redemption value increases. If, on the other hand, the actual counter is higher than assumed, the redemption value is reduced proportionally.

Leasing counted by kilometers is not cheaper, but....

Entrepreneurs looking for a cheaper alternative to standard leasing may be disappointed. It is worth being aware that leasing calculated on the basis of the mileage - in terms of total costs - is similar to other offers available on the market.

Its innovation is not to reduce leasing expenses at all, but to spread the costs in such a way that they are fully adapted to the current financial situation of the company. The installment is calculated in proportion to the kilometres driven so that, in the event of downtime and lack of revenue, all expenses, including those related to leasing, can be reduced.

Discover the additional benefits

Leasing counted by kilometers is a solution that fits well with the needs and expectations of companies operating seasonally or occasionally struggling with downtime, e.g. related to the indisposition of the driver. However, it is worth knowing that such an option brings additional benefits. It's all about more efficient and efficient fleet management, which is possible thanks to the installation of a GPS device.

The person responsible for fleet management in the company gains access to information such as fuel management or road reports. An interesting option is also EcoDriving system that allows you to control the fuel consumption of specific drivers and monitor the driving style of your employees. This will not only reduce the costs associated with refuelling, but also include depreciation of vehicles.