Volkswagen Commercial Vehicles is leading the way in a changing market by rolling out an innovative lease product that provides Irish businesses a new alternative to purchasing a vehicle.
The Business Lease product allows a business to acquire the vehicle for a portion of its operating life. Volkswagen CVs is one of the only manufacturers to offer this option and the initiative will be rolled out on the Caddy van range before being extended to other Volkswagen CV models.
Today’s economic difficulties have highlighted the importance of cash flow and asset management for many small and medium enterprises and Volkswagen CVs have reacted with an innovative solution, an alternative method to acquire vehicles for operation compared with the standard ‘straight purchase’ or ‘hire purchase’ routes.
With a Business Lease, customers only pay for the operating life of the vehicle that they use, resulting in a much more cost effective product.
The difference between this option and the more traditional hire purchase route is that the lease has a lower deposit and supports a reduced monthly payment. Volkswagen CVs has teamed up with industry leaders LeasePlan to deliver this product.
In general, to access a hire purchase product, the minimum upfront payment is the VAT amount which has a negative impact on cash flow. The Business Lease requires just three monthly payments up front.
The Business Lease provides several other advantages over the traditional options including: No exposure to the residual value risk; inclusion of scheduled maintenance; the monthly rental is an expense and VAT is reclaimable; and the asset does not have to be disposed of and is always returned to the lessor
Volkswagen CV director Paul Burke commented: “The Business Lease option provides a ‘release valve’ for Irish businesses that must reduce costs. It is a simple, low cost way for Irish business to get all the benefits of a new Volkswagen commercial vehicle. Volkswagen is proud to offer a solution where quality transport is an essential part of day to day business.”