Companies that need a vehicle fleet have two choices in terms of coming into the possession of the vehicles: they can either buy them, acquiring full ownership over their fleet or they can lease them, paying for the right to use the vehicles to a leasing company.
The best solution is different for each company, but leasing is the choice of many companies today, even firms that could afford buying their own cars, here is why:
- Capital preservation – the fleet leasing process requires the company to make smaller monthly payments instead of having to pay one large sum for the ownership of the vehicles needed, so leasing allows managers to distribute investments in a more balanced way,
- Lower maintenance costs – leased vehicles are usually new, modern cars that come with lower maintenance needs and offer better fuel economy than older vehicles, allowing companies to save on repairs and fuel,
- Less paperwork – leased vehicles stay in the property of the leasing company and so do the related administrative tasks, such as license renewal or tasks related to property taxes,
- Flexible fleet car leasing plans – the average lease term for fleets is three years at the end of which your company can benefit from a new contract and new cars.