Practical Guide: Should you Purchase or Lease Fleet Vehicles?

As anyone who has ever owned their own vehicle can testify, it can be a costly and often stressful pastime. While the basic cost of fuelling and insuring a car can be expensive enough by itself, this can triple in the event of an unforeseen accident or unexpected breakdown. While this may be bad enough, however, imagine the issues that can develop when you are a business owner who owns a large commercial fleet that is central to the successful delivery of the products and services.

To Buy or Lease Vehicles: Which Option Suits your Circumstances?

With this in mind, it is worth considering the option of leasing fleet vehicles through a service provider such as Hitachi Capital Vehicle Solutions. Consider the following points before making a decision:

  • How regularly do you use your Vehicles? Before committing to a final decision, it is important that you evaluate how often you use your vehicles on a daily basis. Should you accumulate high mileage and use each vehicle to complete tasks that are at the heart of your business, for example, then leasing vehicles may help you to minimize your costs while protecting you in the event of a breakdown. The purpose of your fleet is also an important consideration, as you may be willing to invest more   in core commercial assets.
  • Do your Cars have Resale Value? While business owners tend to bemoan the financial burden that ownership brings during a period of recession, the act of purchasing vehicles can occasionally be considered as an investment opportunity. So before you chose to lease rather than buy cars, consider the long-term value in each vehicle and whether they can be resold for a profit? While this is highly unlikely given the fact that cars tend to depreciate in value over time, it is worth taking the time to appraise your options.
  • Can you Manage Monthly Repayments? The current economic situation is buoyant, but British businesses must still be cautious when spending and strive to manage their finances prudently. So while lease agreements may offer considerable logistical and financial advantages, you must take the time to review the precise terms and ensure that can meet your monthly repayments. Just because an option may be cheaper, it does not mean that you are in a position to repay lease fees and costs on a monthly basis.

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