Holden leasing may seem like an attractive solution for many businesses – you get access to a reliable, fuel-efficient vehicle, and you don’t have the outlay of purchasing or financing it. But with new business accounting standards that came into effect earlier this year, leasing is not the financial solution it used to be.
Thankfully, there’s an alternative. Carbar’s subscription model can replace your Holden leasing agreements, keeping your initial outlay to a minimum and reducing the expenses required to list on your balance sheets.
How Does ‘Subscribing’ to a Holden Work?
Taking advantage of Carbar’s subscription service is cost-effective for businesses of all sizes. It’s simply a matter of selecting the cars you want – whether that’s a fleet of Holdens for a construction company or a BMW for the executives – and paying for the time you need to use it. This means if your business is seasonal, you won’t have to pay for cars you’re not using during off-peak periods.
It’s important to note – this isn’t a Car Share service. With Carbar, you get exclusive, 24/7 access to your Holden fleet, but with the added flexibility of being able to scale or cut it off at any point (with only two weeks’ notice). It puts the control back in your business’ hands, helping you make more informed choices about your fleet.
How is This Different from Leasing?
One of the key differences between leasing a car for business or subscribing to one through Carbar is the level of commitment. A lease is going to require your business to commit to the same car and the same provider for a lengthy period time, often three years for business fleets. Carbar, on the other hand, doesn’t have a minimum contract length, just a simple two weeks’ notice, making it a more flexible solution.
On top of this, your business is not responsible for other subsidiary costs that often come with a leasing agreement, such as servicing, registration and roadside assistance. Instead, these fees are covered as part of your ongoing subscription with Carbar.
How Does This Benefit Your Accounting?
All of the above spells good news for your accounting. The changes issued in document AASB 16 by the Australian Accounting Standards Board in February 2016 stipulate that businesses will now have to record the ongoing and future costs of leasing agreements on their balance sheets. This effectively increases the visible debt for a business, changing your debt-to-equity ratio, which will potentially lead to tax implications and difficulties in obtaining capital.
A subscription from Carbar, on the other hand, resolves this issue. Your balance sheet will only need to stipulate the monthly cost, as there is no ongoing commitment. You’ll also lessen the administrative load, as there’ll be no need to plan for and arrange servicing and registration.
Build Your Holden Fleet with Carbar
Sounding like an ideal solution? If you want to scrap the leasing agreements and switch to a modern subscription model that’s better for your business, get in touch with our team today. We’ll be happy to provide you with a tailored quote that meets the unique needs of your business.
Carbar offers a free service for businesses, allowing them to provide subsidised subscription to incentivise employees, attract talent and set themselves apart from the market.
Staff can save up to 20% on subscription fees, swap or stop as they need and trade in their current car for cash.
Register your business today and discover a new way to drive.
