Why Leasing?
There has been a massive move towards leasing as the most attractive way to fund company vehicles and the main reasons for this are:
» Costs move from variable to fixed
» One monthly budgeted amount
» Off Balance Sheet Funding – better Return on Equity than a lump of depreciating metal
» Residual and Maintenance risk transferred to LeasePlan
» Accurate control on spend
» Reduced capital expenditure amounts as vehicles are leased and the company deals with monthly costs and no up front payments.
» VAT is spread out through the duration of the lease
» Opportunity Cost
» Cars / vans can be changed on a regular basis - allowing fleets to run the latest vehicles, which also maintains a high visual company profile