28 March 2023
Starting a new business can be quite a challenge, especially when it comes to managing the company’s fleet of vehicles. As a new business owner, you are probably faced with the need to acquire vehicles to keep your operations running smoothly. However, purchasing a fleet of vehicles outright can be an expensive investment that can weigh heavily on your finances. Luckily, there’s a solution that can help you ease this burden: fleet subscription.
Fleet subscription is a service that allows your business to rent a fleet of vehicles for a monthly fee. This service is perfect for new businesses like yours because it provides several benefits that can help you get started without putting a significant strain on your finances. In this blog, we will discuss why fleet subscription is perfect for new businesses and the benefits it provides.
The most significant advantage of fleet subscription is that it does not require any financing. As a new business owner, you can access a fleet of vehicles without the need for a significant upfront investment. This is especially beneficial if you do not have the cash flow to finance the purchase of a new fleet. By choosing a fleet subscription, you can get access to the vehicles you need without breaking the bank.
Fleet subscription is an off-balance sheet financing option. This means that the cost of the fleet subscription does not have to be reflected on your company’s balance sheet. This is beneficial for new businesses that are looking to keep their balance sheet clean and avoid showing any long-term liabilities.
Another significant benefit of fleet subscription is that there are no long-term commitments. You can choose to rent a fleet of vehicles for as long as you need them. You can opt to terminate the subscription whenever you want without any penalties. This flexibility is beneficial for businesses that are just starting and may not have a clear idea of how long they will need the fleet of vehicles.
As a new business owner, you may not be able to predict how fast your operations will grow. This can make it challenging to invest in a fleet of vehicles that may not be suitable for the future needs of your business. Fleet subscription offers the flexibility to grow the fleet size as your business grows. You can rent more vehicles when you need them without the risk of having an underutilised fleet of vehicles that may not be generating any revenue.
Fleet subscription includes all on-road costs in the monthly fee. This includes registration, insurance, roadside assistance, and maintenance costs. This means that you do not have to worry about any unexpected costs associated with running a fleet of vehicles. This helps you to budget your expenses more efficiently, as you can predict your monthly expenses without any surprises.
By opting for subscription, you also have the option to choose electric vehicles (EVs). By adding EVs to your business fleet, you can reduce your carbon footprint and lower your operating costs since EVs have lower maintenance and fuel costs. Furthermore, you can take advantage of government incentives and tax credits for adopting EVs, which can further lower your costs. By choosing a fleet subscription with EVs, you can show your commitment to sustainability and benefit from the cost savings associated with EVs. You can learn more about the flexibility of EV fleet subscriptions here.
In conclusion, subscription is the perfect solution for new businesses looking to get started without investing heavily in their fleet of vehicles. With no finance required, no impact on the balance sheet, no long-term commitments, the flexibility to grow the fleet size as your business grows, and all on-road costs included in the monthly fee, you can enjoy the benefits of having a fleet of vehicles without the burden of owning one. Learn more about the tax benefits of fleet subscription!
If you want to learn more about Karmo’s risk free subscription options for your new business, enquire with Karmo today. Alternatively, you can learn more about Karmo Fleet Subscriptions or browse our great range of vehicles.