The lessee is responsible for insuring and maintaining the vehicle. Benefits Known budgetable rentals. Preserves working capital - funds can be invested in other parts of the business. First rental is only initial outlay. Tax efficient - rentals are tax deductible.
Operator can benefit financially from careful maintenance and use of vehicle.
The Volvo Purchase Plan can be combined with the Volvo Contract Maintenance Plan. Operators can then benefit from the advantages of having all regular servicing and repair work undertaken by franchised Volvo workshops. The operator hires a vehicle for an agreed period and achieves ownership on completion of the agreement. For tax and accounting purposes, the operator is treated as the owner from day one. This is a form of 'on balance sheet' funding.