The vehicle you need at the right time
When choosing a vehicle in the construction sector, what´s important is the function and utility to be covered, as well as comfort and safety for the person who’s going to drive. For smaller companies, the vehicles in their basic fleet are the ones in which the company manager travels in and ones that meet the main needs of the company. The option of flexible leasing is very attractive so that a different vehicle can be chosen in specific cases, depending on the needs of the building project.
In construction fleets, what really counts is having the vehicle you need when you need it. This has been particularly evident in the various phases of lockdowns that the pandemic has brought about.
The smartest concept for companies that have been able to adapt to this situation has been to ensure their mobility through leasing, rather than long-term contracts or purchases. This has given them a competitive advantage in having the right vehicle. Circumstances have finally convinced us to think in the short and medium term, and fleet managers are indeed aware of this.
Avoiding debt and long-term commitments
Watching vehicles sit idle while companies continue to pay purchase or lease payments has caused many business owners losses that could be alleviated with a change of focus in their flexible leasing operations.
In this type of leasing contract, the customer does not choose a specific car, but a category or market segment. The leasing operator provides the customer with a new or used car (usually up to 24 months old) from among those available at the time.
For construction companies, using flexible leasing is an option that prevents them from going into debt to solve their mobility needs. As a leasing operation, it is a tax-deductible expense that allows them to use the company's capital to generate assets of greater value and profitability for the company. In addition, with flexible leasing, they avoid the long-term commitments required by fixed leasing operations and the possible penalties for cancellation
Mobility factors in construction
Seasonality is very important in the activity of construction companies. It’s essential to consider this in the development of the construction project, depending on the type of project, worksite, and of course, the weather at the site. This will prevent incidents with vehicles or unforeseen stoppages during the duration of the construction work.
Vacation periods for workforces is another factor that alters the activity of construction companies, and another of the advantages that flexible renting provides them with. As a general rule, companies linked to the construction sector close for 15 days in August and another 15 in December, practically ceasing all their activity during these periods. With flexible leasing, vehicles can be returned during those days and recovered immediately on the dates indicated by the company itself, with the consequent cost savings that this entails and without any type of penalty.
In business and economics, uncertainty is one of the uncertainties of our time that we have learned to live with. Flexible leasing helps to eliminate this, hence the current popularity. It removes doubts and uncertainties regarding the mobility that companies need to manage their operations and business relations. This is why, for construction companies where every working hour counts in order to meet their delivery commitments, flexible leasing has increasingly become an indispensable tool.
According to data from the Spanish Vehicle Renting Association (AER), 65% of the units contracted under flexible leasing are commercial, industrial, vans or pick-up vehicles, and barely 35% correspond to conventional passenger cars of all types. This means that the vehicles most commonly used for work purposes allow for greater flexibility in their contracts, which companies and fleet managers take advantage of in order to save costs in their fleets.
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