Purchase vs Leasing for Business Vehicle Fleets


At Whittle Hall Finance we’re seeing a growing number of decision-makers at SMEs turn to leased fleets as their preferred option. And the same reasons are cropping up again and again:


The practical benefits

With leasing, an SME can easily upgrade its cars and/or vans every few years, hassle-free. Leasing contracts are flexible, generally lasting anything from 24 months to 60 months. And given the pace of advancement in vehicle technology, this means a business that leases can ensure it has a modern, fuel-efficient fleet, rather than being stuck with out-dated models.

(The good news for SMEs that are currently in the aforementioned ‘stuck’ position is that finance companies can offer a sale-and-leaseback deal, which converts owned vehicles to a leasing arrangement. Give WHF a call to find out your options.)

What’s also clear is that as newer cars are less likely to break down, business owners and fleet managers will have fewer worries about unreliability. Even if something does go wrong, the vehicles are likely to be covered by a manufacturer’s warranty; most of these last at least three years, so there’s a good chance that the warranty will cover the leasing agreement, in which case all non-consumable parts can be replaced for free.

And many lease agreements also include breakdown cover and maintenance packages as standard, or at the very least as an optional extra.

The administrative benefits

Businesses can delegate the administrative burden to experts (like us!), who can leverage their knowledge and contacts to access the best vehicle finance schemes.

Using our trusted networks WHF is able to find new vehicles matched to a business’s specifications, negotiate a great price with the seller, arrange your finance, and deliver the vehicles to your (mainland UK) premises.

The financial benefits

Last but not least, “It’s all about the cash flow”! Rather than forking out a hefty sum at the outset, an increasing number of the businesses we speak to tell us they’d rather pay in manageable monthly instalments.

These regular fixed payments are usually lower than other forms of finance, and as the business doesn’t own the vehicles it isn’t paying their full value – which strikes us as a much more efficient use of cash.

Added to this are tax benefits. Leased vehicles don’t count as a company asset, which means that an SME can claim its lease payments as a business expense. And VAT is paid on the leasing amount rather than the full price tag, which when translated across the cost of a whole fleet can mean significant savings for a business.

Contact WHF now to discuss the best option for your business

Further reading: 

What you need to know about Car Leasing

Should I use a broker to find a new (or used) car?

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