Advances in forecourt technology have led to a surge in the growth for the car wash business, with automated, self-service systems ensuring that for both businesses and consumers alike, the process has never been more convenient. Sophisticated mobile apps such as WashNow! have revolutionised the industry, facilitating a forecourt service that is quick, streamlined, and hassle-free. It’s never been a better time to set up a car wash business- all you need is the right equipment. With the aforementioned advances in forecourt technology always on the rise, a certain measure of equipment quality is needed in order for your business to compete effectively.
There are several ways to achieve this level of quality, each with their respective merits and drawbacks. In today’s post, we’ll be examining one of these methods- equipment leasing- and outlining the benefits it can deliver to your car wash business. As ever, there is no simple, universal answer as to what method of equipment financing is the best. Whether you should lease, loan, or purchase car wash equipment will more than likely come down to two factors: the depth of your budget and the specific type of equipment you need. Today, our team are here to offer their professional experience to help you make that determination.
Allows You to Manage Your Capital
A company’s ability to access cash and credit is a key factor when it comes to growth. By leasing equipment rather than purchasing it outright, companies are able to finance assets in their entirety whilst paying little to nothing as down payment. This stands in contrast to taking out a loan, where you typically have to make a large down payment in order to obtain the equipment. With 100% of your total equipment costs financed and your cash not tied up in depreciating assets, your capital is therefore free to be invested elsewhere, be it additional revenue streams or kept back as a rainy day fund.
One of the biggest reasons why companies opt to lease their equipment is that they can typically be deducted as a business expense when completing tax returns. This lowers your taxable income and reduces the net cost of your lease, saving you a lot of money and freeing up your available capital. However, you should always check with your local authority to determine your company’s eligibility for tax breaks, as the laws that govern them vary from country to country. Generally speaking, you need to be able to demonstrate taxable profits in order to claim tax benefits.
Leasing often comes with flexible terms, making it ideal for start-ups, small businesses, businesses with bad credit ratings, or businesses simply looking to reduce costs. Most leasing contracts will also give you the option to purchase the equipment outright at a very reasonable price.
Compared to a loan, the leasing process is much easier- and quicker, as most leases are approved in less than 24 hours. This ensures that rather than waiting weeks or even months for the equipment you want, you get it precisely when you need it.
When you lease equipment, you avoid the large, upfront costs of purchases or loan down payments. As you rent the equipment for a small, fixed amount each month for a specified duration of time, your budgeting is made that much easier. This allows you to forecast your expenses and is great for cash flow.
Keeping Up with the Best Equipment
Innovations in technology happen fast- and are taking place all the time. What was once new and shiny becomes obsolete at a quicker rate than it used to. It can be expensive to purchase, maintain, and upgrade high-quality equipment, and sometimes businesses can feel like they have to take a loss in order to remain competitive. By leasing equipment, however, you can secure cutting-edge equipment that you wouldn’t otherwise be able to afford, by avoiding the capital outlay that comes with purchasing or loaning. Leasing removes the headache of obsolescence, as you are free to simply lease higher quality equipment once your current lease expires.
Our Partnership with Oak Lease
Recently, we at PSD Codax have partnered with the renowned international leasing firm Oak Lease to take advantage of their extensive industry expertise. With over four decades of experience at the highest level, and thousands of clients across the world, Oak Lease’s continued success is a testament to the efficacy of equipment leasing. With minimum leasing contracts of just £15,000, don’t hesitate to contact Oak Lease for a quote today.
Cutting Edge Car Wash Technology with PSD Codax
At PSD Codax, we have over 25 years of experience in developing forecourt technology to the highest quality. Our innovative, hassle-free access control systems are unmatched by anything else on the market, which is why our diverse range of products are the most common form of token-free access control in the world. Whether you are an established chain or just setting up an independent car wash, PSD Codax caters to every type of client in the forecourt trade. We strive to provide operators and customers alike with reliable, intuitive, and fast-acting controllers to ensure the smoothest possible car wash experience.
For more information on our market-leading car wash technology, don’t hesitate to get in touch with our friendly staff today.