12 November 2018

Vehicle leasing is becoming more and more popular, particularly with new businesses or those that have only been in operation for a few years. Whilst some organisations may be able to invest their money in an outright purchase of vehicles, for many leasing is a more attractive option.

Based on this, we wanted to showcase some of the key benefits that vehicle leasing can bring to new businesses.

Greater control over cash flow

One of the largest benefits to new businesses is that they are able to maintain greater control over their cash flow, particularly in the first few years of operation.

Vehicle leasing allows business owners to budget for the monthly payment, adjust their spending accordingly and ensure that they have the correct finances available each month.

Lower initial investment

For new businesses, purchasing a vehicle or a fleet of vehicles is a large investment, but with new business vehicle leasing, that doesn’t have to be the case.

Leasing a company vehicle means that business owners are able to reinvest the initial funds into their business, easing any cash flow worries and keeping the business moving forward.

A wider selection of vehicles

If a new business has rapidly expanded, vehicle leasing gives a greater choice of vehicles, which is ideal if a business owner has clients and employees in different locations.

For example, businesses that are operating in larger cities may be able to take advantage of plug-in hybrid or full electric vehicles, which provide drivers with greater fuel economy and the opportunity to reduce their impact on the environment.

In contrast, if a business operates on a national level, the owner may be able to lease vehicles that offer greater safety on longer journeys.

Full maintenance and servicing

When it comes to new business vehicle leasing, another benefit is that business owners can keep track of their fleets’ maintenance and servicing schedule, which in most cases, is included as part of their contract.

This means that they are able to both reinvest these savings back into the expansion of their business, whilst ensuring that their Duty of Care obligations are met, by providing vehicles that are safe, secure and at a minimised risk of breakdowns.

As vehicle technology develops at such a fast pace, it’s all too common to see maintenance costs for electronic systems increase, but since these costs are covered in the contract, it’s not something business owners need to think about.

Access to “green fleet” vehicles

Despite the lack of clarification in the 2018 Autumn Budget statement, the Government is still working towards the decarbonisation of the UK’s fleet industry.

For organisations that are public-facing and have a strong desire to reduce the impact their business has on the environment, they are able to choose from a range of “green fleet” vehicles at the start of their vehicle leasing journey.

Grants are still available for businesses that want to invest in workplace charging points. You can find out more information about this on the Government website here.

Further reading

For more information on how vehicle leasing could benefit your business, and what fleet managers and company owners can do to control their costs, take a look at the articles below:

In summary, vehicle leasing is one way that new businesses are able to maintain control over their income and outgoings, whilst ensuring that all drivers are in vehicles that are safe, maintained and at a monthly cost to suit their budget.

To find out more about our fleet management and leasing, employee benefits solutions and driver services, call a member of our team on 0844 854 5100 or email CSalmon@sgfleet.com.