For all educational facilities, transport plays an integral role to the smooth functioning of the systems. Most schools and colleges will have their own form of school transport to take the pupils to their place of learning every morning and to transport them safely home after lessons. In addition, the school minibus plays a vital role in the transportation of students to special events such as school trips and class tours. In addition, research suggest that free school transportation can help to improve attendance levels and performance. Every school will therefore rely on their minibus for day-to-day activities. For many schools, the first choice in terms of financing their school minibus is whether to buy it outright or to lease it. This article explains some keyways in which leasing the school minibus may be the better option.
Easy to budget for
When a school decides to purchase outright their minibus this can typically cost tens of thousands of dollars. Estimates vary in terms of the size of the minibus and the equipment it has on board but as a rough figure, a school bus can cost between $65,000 to $85,00. This is a significantly financial outlay for any educational establishment and can take a large amount of money out of the school’s finances upon purchase. When faculty staff opt to take out a school minibus lease they will have far more control over their budgets. A leasing scheme typically involves a regular monthly payment rather than a large initial cost. Educational establishments will also be able to have a clear idea of the annual mileage that the vehicle will undertake as it will make regular school journeys along predefined routes. This means that any extra costs that accrue because of going above the pre-agreed mileage can easily be avoided.
No depreciation
Any vehicle that is purchased from new will quickly begin to depreciate. This applies to school minibuses just as much as standard vehicles. As the vehicle ages and has more mileage on the clock it will lose more of its overall value. By leasing the vehicle, the problems relating to depreciation are avoided. Whilst you will not own the vehicle, you also will not have paid a lump sum to purchase it that steadily loses its resale value. A standard school minibus typically has a useful life of between ten and fifteen years and after that period the resale value of the vehicle may be a small fraction of the initial cost.
No hidden fees
With the outright purchase of any vehicle, it is understood that eventually there will be a need to maintain, service, and repair the vehicle as it ages. The same applies for a school minibus which will need to have a regular service and maintenance schedule to ensure that it continues to function safely and efficiently. With a leasing agreement, the service and maintenance costs are typically included in the overall monthly fee. This adds a great deal of clarity to the budget for such a vehicle and helps to ensure that there are no hidden or unexpected costs involved in the lease.
