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The benefits of vehicle leasing

  • Blog
  • 14 December 2017

Vehicle leasing is a simple and effective method for ensuring your staff can get on the roads quickly and making sure that you operate efficiently at all times. So, what is it that separates leasing from a regular purchase and is it a better option than buying your business vehicles?

This blog explains what the benefits of vehicle leasing can be for your business.

The benefits of vehicle leasing

Simple versatile affordability

Leasing is a great option if you don’t have the capital needed to purchase a vehicle outright. That is especially relevant if you have a number of employees, all of whom will need access to a vehicle for work.

Leasing will let you provide cars to staff for one simple monthly payment, which drastically reduces the amount you have to pay upfront. It also means you can react quickly if you take on a new staff member and you need to get them on the roads as soon as possible.

Personal contract hire or personal contract purchase is something else to consider if you don’t have the capital for an outright purchase. Contract hire is often cheaper monthly, but the contract purchase option offers exactly that: at the end of the lease contract you can choose to purchase the vehicle outright, making it a business asset, and offsetting the issue of a lack of initial capital to purchase a fleet.

Brand image without breaking the bank

Leasing a fleet of cars can provide more than just affordability. Maybe you’ve always had one specific make and model of car in mind when it comes to presenting the right brand image to anyone who sees you on the roads.

Leasing a fleet of cars can help you create the brand image you’ve always wanted without having to spend more than you can afford. You can quickly and simply put a fleet of your chosen car on the roads and get to work building the right brand image.

Perhaps it’s an economical car in a colour that matches your brand image, which reinforces the connection between your brand in the minds of people who see your car and staff around. Perhaps it’s something a little more upmarket that emanates luxury, style and class. Whatever you need, leasing is a great way to get up and running quickly.

No need to worry about maintenance

When leasing a car, you have the benefit of being covered under manufacturer warranty during the contract. This means you won’t have to worry about any excessive repair costs whilst under the lease. If you owned a car, you might find that repairs pop up more over time as they’re in use, which will add up over the lifetime of a car.

Alongside that, you’ll have to factor in how quickly your car will depreciate. Past a certain point, you’ll end up being unable to recover much of the car’s initial cost at all once you sell it on, meaning a lot of money is simply lost in the sale. With a lease vehicle, depreciation isn’t something you have to consider as much. 

Think also about how quickly automotive technology advances. If you owned your fleet of cars, trading them in for newer models would likely come at a steep cost to your business.

However, if you lease your fleet and choose to upgrade to newer models at the end of the contract, you’ll be able to take advantage of any advances in engineering such as fuel efficiency, essential safety features, and ease of use / performance upgrades.