5 January 2023
As a small business owner, you know that every decision you make has the potential to impact your bottom line. When it comes to choosing the best option for your company’s fleet of vehicles, it’s important to consider all of your options. In recent years, car subscription has emerged as a popular alternative to traditional car leasing. Here are a few reasons why 2023 is the perfect time for small business owners to make the switch to car subscription:
One of the biggest advantages of car subscription is the flexibility it offers. With a traditional car lease, you are locked into a long-term commitment and limited to a specific make and model. This can be problematic if your business needs change or if you want to try a different type of vehicle.
For example, let’s say you own a small landscaping company and you lease a Ute for your business. As your company grows, you may decide that you need a larger ute or more Utes to accommodate more equipment. With a traditional car lease, you would be stuck with the initial vehicle until the lease is up, even if it no longer meets the needs of your business. With car subscription, you have the freedom to switch to fleet composition whenever you need to, allowing you to better adapt to the changing needs of your business.
As a small business owner, you know that every decision you make has the potential to impact your bottom line. One of the biggest concerns when it comes to acquiring new vehicles is the impact on your company’s balance sheet. With traditional car leases, the expense is classified as a capital expenditure. This means it appears on the balance sheet and can impact your company’s debt-to-equity ratio. This can be a problematic when trying to secure a loan or invest in other areas of your business. With car subscription, there is no need to worry about this as the expense is classified as an operating expense. This means that it does not appear on the balance sheet and does not impact your company’s debt-to-equity ratio.
For example, let’s say you own a small marketing firm and need a new vehicle in your fleet. The expense of leasing a car would appear on your balance sheet and could potentially impact your debt-to-equity ratio. With fleet subscription, you can add a new vehicle to your fleet without any impact on your balance sheet. This allows you to focus on other areas of your business.
Another reason why 2023 is the perfect time for small business owners to consider car subscription is the availability of electric vehicle (EV) options. As concerns about the environment and sustainability grow, more businesses are looking for ways to reduce their carbon footprint. One way to do this is by switching to EVs for your fleet. At Karmo, we offer a range of EV options for car subscription. Making it easy for small businesses to trial an EV fleet and see how it fits with their business operations.
For example. A small delivery company may be interested in switching to EVs to reduce their carbon emissions. With car subscription, you can try out a few different EV models to see which one works best for your business without committing to a long-term lease. If the EVs don’t work out, you can simply switch to a different vehicle without any long-term commitment.
In addition to the flexibility and balance sheet benefits, car subscription can also help small businesses save money in the long run. With a traditional car lease, you are responsible for maintaining and repairing the vehicle, as well as paying for insurance and registration. With car subscription, these costs are often included in the monthly fee, making it easier for small businesses to budget for their fleet expenses. In addition, car subscription can often be more cost-effective than traditional leasing, especially for small businesses that only need a few vehicles.
For example, let’s say you own a small catering company and you need a van to transport your equipment to events. If you were to lease a traditional van, you would be responsible for paying for all of the maintenance and repairs, as well as insurance and registration. With car subscription, these costs would be included in your monthly fee, making it easier to budget for your fleet expenses.
Another reason why car subscription is a great option for small business owners is the convenience it offers. With a traditional car lease, you have to go through the process of negotiating terms, filling out paperwork, and making a long-term commitment. This can be time-consuming and burdensome for small business owners who have a lot on their plate. With car subscription, the process is much simpler. You can easily select the vehicle you want and sign up for a subscription online, without any long-term commitments. This can save you a lot of time and hassle, allowing you to focus on running your business.
Overall, car subscription is a great option for small business owners who want flexibility, no balance sheet impact, the opportunity to trial an EV fleet, and potential cost savings. As the demand for sustainable transportation options continues to grow. So now is the perfect time to make the switch to car subscription with Karmo.
At Karmo, we understand that every small business is unique and has different needs when it comes to transportation. That’s why we offer a range of options for car subscription. This includes Hybrid and EVs, to ensure that we have something that will work for every business. Our team is dedicated to helping small businesses find the best solution for their fleet. We are always here to answer any questions or concerns you may have. Don’t let the burden of traditional car leasing hold your business back. Make the switch to car subscription with Karmo and take control of your fleet today.