Car Leasing For Non-Profits: Cost-Effective Solutions for Your Organization’s Transportation Needs

Non-profit organizations operating in areas with limited transportation options may have challenges in helping clients. While public transportation and volunteer drivers may be available, opportunities may still be available.

To fill these gaps, many non-profits have made use of the help of ride-hailing services such as Uber and Lyft. However, these services can be expensive and may not always be able to do what the non-profit needs at all times. For instance, specialized vehicles may be required to transport clients with mobility challenges, or rides may need to be coordinated for large groups of people at once.

However, some ride-hailing services have started to work with non-profits to help them out anyway. Some services are specials specifically for non-profits, and some organizations have even created ride-hailing platforms designed to serve their clients’ needs.

Things to Consider when Leasing Vehicles

·        Leasing: Many charity organizations choose to own their vehicles, assuming it is the most predictable way to manage fleet costs. However, this means that they have to pay upfront for everything, including maintenance and repair costs, both scheduled and unforeseen. Switching from purchasing to contract hire can be the most significant step toward budget efficiency for fleet management. By leasing, charities can buy vehicles for less since leasing companies are bulk buyers with excellent deals. Furthermore, the cost is spread over time, with a budget-friendly monthly spend. The burden of maintenance and service lies with the fleet provider, allowing charities to modernize their fleet without a significant capital outlay. Additionally, outsourcing the risk and administration of unforeseen repairs and downtime means less administrative work for the charity. All these benefits can help charities save costs and squeeze more from less. Although it may sound counterintuitive, it can make sense for some charities to sell their fleet and lease it back. This model has saved many organizations a lot of money in a surprisingly short time. Explore more options, here.

·        Get the right spec: Charities may not have the luxury of hiring an in-house expert to manage their fleet. However, fleet leasing companies have a wealth of expertise that can help charities optimise their fleet and find suitable vehicles for their specific needs. These companies can assist with identifying the types and number of cars required, considering the payload, fuel consumption, and any necessary accessories, such as taillifts or wheelchair ramps. In addition, they can help charities determine the conditions of their contract hire, including contract length, tyre policies, contracted mileage, and maintenance agreements. Charities should not be afraid to go for the contract they want, even if it means moving away from rolling contracts. Short, medium, and long-term contracts are now more flexible and can be adjusted to cater to each specific charity. By getting the fleet specification right and tendering for the best deal, charities can save money and make their fleet more efficient. Fleet leasing companies can be valuable partners in achieving these goals.

·        Outsourcing: If a charity organization needs to manage licenses, monitor fuel consumption, and educate drivers on payloads, they might find these tasks challenging due to their focus on more critical aspects of their operations. However, compliance with VOSA regulations, minimizing costs, and ensuring the vehicles are always operational is crucial for their work. Considering fleet management services are equipped with the expertise to manage fleets efficiently can prove cost-effective. With real-time reporting, they provide the necessary insights for cost reduction while allowing the organization to maintain control. By outsourcing fleet management, the charity organization’s staff can focus on performing their crucial work while positively impacting their bottom line. Implementing this change can lead to significant savings of up to 39%.

What could be a better long-term solution?

Leasing a car for your non-profit can be a cost-effective solution as it allows you to avoid the upfront payment and only commit to a fixed period of payment which can often be cheaper. This way, you can maintain healthy levels of cash flow and control your finances in the short and long term. Additionally, leasing with a maintenance package can help you spread out the costs of servicing and MOT, which can further aid cash flow.

You can inquire and complete some paperwork, and your dedicated Account Manager will do the hard work for you based on your specific requirements, making the process stress-free.

Furthermore, new business car leasing offers tax benefits such as claiming back an element of the VAT on both the initial rental and monthly payments and offsetting rental costs against monthly tax bills depending on the car’s CO2 emissions. However, these benefits only apply if you are a VAT-registered company and the vehicle is used purely for business purposes.

In Conclusion

In conclusion, car leasing can be a good option for non-profit organizations with transportation needs. Leasing allows organizations to avoid upfront costs and spread out expenses over a fixed period, making it easier to manage cash flow. Additionally, fleet leasing companies can provide expertise in optimizing fleet management, vehicle selection, and maintenance, which can help organizations save money and improve efficiency. Organizations can focus on their core work by outsourcing fleet management while maintaining control and reducing costs. Finally, new business car leasing offers tax benefits, which can be advantageous if the organization is VAT registered and uses the car purely for business purposes.

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