| Capital freed for expansion & investment |
Capital tied up in depreciating vehicle |
| Vehicle is a tax deductible expense |
Vehicle is a taxable asset |
| All maintenance is controlled by Value's in-house workshop |
Reliant on an outside service provider who charge at retail prices |
| Monthly payment includes licence & COF |
Yearly licence payment to be budgeted for |
| One payment processed monthly |
Yearly invoices for lease spares, servicing, tyres, as well as individual cheques to be sent to the supplier |
| Budgeting simplified – all costs are known in advance. |
Vehicle costs fluctuate making budgeting difficult. |
| Customers have the option of a replacement vehicle – free of charge. |
Hiring costs involved for servicing the vehicle. |
| Free breakdown service. |
Costly tow-in charges plus loss of vehicle during breakdown. |
| Optional signage. |
Initial payment required for signage. |
| Vehicles are delivered fully built-up and ready for use. |
No one needed to liaise vehicle purchase, body build-up of the vehicle etc. |
| Drivers’ and /crew’s wages can be included in the monthly payment. |
Drivers’ and/crew’s salaries to be paid as well as tax, medical aid, pension and UIF. |
| Fuel can be included in the contract. |
In the case of no fuel facility an initial deposit is required at the garage where additional staff will control fuel usage. |
| Insurance can be included in the contract. |
Additional staff required to manage insurance portfolio. |
