Peace-Of-Mind Purchasing
Leasing has not caught on as an alternative to outright purchase in Oman, but the scenario is steadily changing. Malcolm Xavier Crasta delves into the various aspects of the business

In these financially tough times, paying a large amount of money for a car or household furnishings can deter quite a few. But customers need not despair as a number of companies in Oman are rolling out attractive leasing offers. Leasing offers consumer’s the benefit of using an asset without paying a large sum of initial cash. A lease regularly requires no down payment, while loans frequently do. Leasing can also come in handy for people who are in a country for a limited period of time as this takes away the burden of a used asset that they have to rid themselves off when leaving.
 

Take a pick
Says Nikhil Krishnankutty, general manager, Towell Furniture, a one-stop-shop for an individual or corporates who want furniture for a home or office, “We provide a wide range of designs of all forms of living, dining, bedroom, outdoor and office furniture that can be made available on affordable instalments so there is no burden on newcomers, or the company paying for this furniture,” he adds, “Our normal rental periods for long term rentals are generally for two years.” Naturally, all products are available for outright purchase should that be the customer’s need.

Sometimes expatriates come only for a short assignment or may come in advance either before their families join them and they actually set up home. In certain cases their own furniture takes time to arrive. For such cases, Towell Furniture provides furniture on short term rentals ranging from 2-6 months to service this “temporary” need. When the customers furniture arrives, the transition is almost seamless. The employee enjoys convenience and the company saves on exorbitant hotel costs or duplication of unutilised house rental costs while the home is being set up in ordinary circumstances. In addition, a consumer need not worry about disposing his own furniture at a virutally negligible value when leaving the country or even when he chooses to change his furniture after a few years.

All companies strive to save money which becomes even more of a mandate in a recessionary climate where there is a reluctance to spend lump sums on capital asset purchases. Towell Furniture’s offering allows such companies to avail of the same service and utility at a fraction of what they would have paid for an outright purchase, which favourably affects cash flow and more importantly, it can be written off as an “expense” rather than listed as an asset on the balance sheet. The company also has the flexibility to determine the exact period it wants to lease these assets – so in truth, there is no wastage, and the assets that are provided are utilised from day one to the end of the required period. Says Krishnankutty, “We differentiate ourselves in the market by providing a hassle free and competitive rental service.”

Rental service
A number of companies in the market offer car rental services. Most of them offer very similar plans with minor variations, primarily relating to the range of vehicles you can lease. Usually, but not always, leasing directly from dealerships that provide the facility is limited to their range of vehicles as is the case with Wattayah Motors, but sometimes with the benefit of a better deal, whereas with third party companies like Mark Rent-a-Car your options are only limited by the various cars in the country and deals can be worked out over a wide range of cars. The former is beneficial to individuals and companies looking for a fleet from a single dealer.
 
“Since the vehicle is supplied directly from the dealer who have expert staff and full access to manufacturer information. This will always ensure that the car meet the customer’s requirements. Additional aftersales benefits are the same as any customer who would buy a car directly from Wattayah,” says Andrew Potts, dealer principal, Wattayah Motors. The latter is beneficial to companies looking for a number of vehicles from multiple dealerships. “When a client has a need for various types of vehicles it would be of advantage for the client to deal with only one company and also this would give him a better leverage to negotiate the best price,” says Alex Crasta, manager, Mark car rental and chauffer service. Prices can vary greatly so it is always advisable to scout around before making your
final decision.

The largest benefit of leasing a vehicle is the coverage the vehicle has in terms of maintenance, as it is entirely covered by the agreement. And at the end of the term, it is general practice to offer a deal whereby the customer can purchase the car or just hand it back to the company. But there are two important factors to note while leasing a car. Firstly, leasing plans can be worked out from one year onwards but it is always advisable to at least work out a three-year contract as this brings down the cost significantly. Second, it is possible to foreclose a deal but as a general practice this is possible only after a one year period and depending on the agreement, the rental amount for a certain number of months is taken as a cancellation fee. Overall though it is a great form of hassle free motoring. So if you wish to drive your dream car or the bring home that piece of furniture that will add to the aesthetics of your house, go ahead and buy it if you can, if not lease it.
 

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