Cut Your Vehicle Fleet Costs By Leasing

bobbyjones| September 11, 2010 | No Comments

We find ourselves in what is being called an ‘austerity economy’, the government is cutting public spending while increasing the amount of money that is being drawn from the public in the form of taxes. And that’s a fine economic model, obviously cutting spending while increasing income is the very definition of getting richer so how can you apply this to your fleet?

If your company owns its own vehicles then obviously they’re liable for maintenance, upgrades and replacements, fuel, insurance, taxes, everything. That’s a high price to keep your employees on the road.

But you need to keep your sales representatives, agents and staff on the road so that’s unavoidable, right?

Well, not if you look into car leasing and contract hire options.

Contract hire allows you to rent a car where your monthly premiums remain unchanged for the rental period. The loss of residual value is borne by the rental company and not by you. Because issues such as insurance and maintenance are all taken care of you have a predictable cost making budgeting simpler and time consuming factors such as reselling old units, dealing with garages and workshops can all be avoided. This is as true for van contract hire as it is for car rental.

Car leasing on the other hand is much like rental only for longer periods and that means better terms for you.

Leasing your cars can mean that after the first year you should be able to get better terms on your monthly rental fees, the standard practice here in the UK is to request an initial payment to the value of the first three months followed by 35 standard monthly payments, for example. The mileage on these contracts is generally assumed to be 10,000mpa but you should be able to negotiate if your experience leads you to believe your vehicle usage will be different.

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