Advantage operational leasing

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Operational leasing always makes sense when compared with the outright purchase of cars because it means you get to keep your money in your business rather than spending it on a depreciating asset.

It also means that you are outsourcing a non-core activity to professionals.

They can deal with everything from maintenance and tyres to insurance and disposal of the vehicle at the end of the contract. It's a hassle-free solution.

The benefits of outsourcing are far more important for most firms than the ability to treat an operational lease as off-balance-sheet finance; a situation that may of course change at some point in the future, depending on the outcome of the long-running debate on accountancy standards.

It is also worth noting that while businesses such as Alphabet can certainly provide vehicles under a straightforward lease agreement, they can also deliver a variety of alternative mobility solutions. Corporate car sharing programmes such as Alphabet's own AlphaCity scheme is an example. AlphaElectric offers a solution for fleets wishing to run electric vehicles.

Then there are apps to help your drivers with a range of everyday issues from contacts to parking.

We can put together salary sacrifice schemes for clients too.

Deal with a reputable lessor and there should be no need to worry about excessive charges for supposed damage when the vehicle goes back.

When a car is returned to us after four years we know it won't be as good as new. There is such a thing as fair-wear-and-tear.

In any event we use an independent third party to assess damage and customers will only be charged if it is fully justified.

Nor are clients heavily penalised if they have to return a car, say, 12 months into a four-year contract. All Alphabet will seek to do is recover any depreciation related losses it may incur.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.

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