Running a business comes with various logistical decisions to make on a daily basis. But, if you own a company that relies on transporting people or goods, your vehicles shouldn’t have to be one of them.
Whether you need to get employees to business meetings or products to customers, you may be considering company cars to simplify the process - and boost brand awareness in the process. However, buying a fleet of corporate vehicles outright can be an expensive commitment. So, for many businesses, the popular choice is fleet leasing.
But how does fleet leasing work, and what are the benefits?
Guide to fleet leasing
The term ‘fleet leasing’ refers to the leasing of a group of vehicles. Most commonly, this service is used by businesses seeking good rates and minimal maintenance. Whether your company requires five vehicles or 5,000, fleet leasing is the most economical and hassle-free option.
What is a fleet lease vehicle?
A fleet lease vehicle is a vehicle owned by a leasing company and leased to a business as part of their fleet (group) of vehicles. Fleet leasing allows a corporation to use a number of vehicles for a set lease period with monthly payments.
These vehicles can be used by employees, delivery drivers and so on for business use, and sometimes personal use, too. Once the lease period has ended, the cars are returned and can be updated with brand new cars, should the company decide to continue with a renewed fleet leasing contract.
This can include car leasing or van leasing, depending on the company’s needs.
How does fleet leasing work?
Leasing a fleet of vehicles is much more simple than it might seem. Follow our step-by-step guide to find out how to lease a fleet of cars.
- Choose the type of vehicle you would like for your fleet.
- Contact us to get a quote on your leasing deal.
- Submit your finance check and your application for financing.
- Once this has been accepted, your vehicles will be ordered from one of our suppliers. We will contact you to let you know when the vehicle is expected to arrive.
- We will organise your payment plan and email your financial documents across to you. You will never have to pay any admin or processing fees with us.
- You will also be given the option to choose a fleet management package that suits your needs.
- Once the vehicles have arrived with us, we will contact you to organise a delivery date that is convenient for you. Our delivery service is always free.
- Upon delivery, you will sign a vehicle acceptance notice.
- Enjoy your new company cars and pay monthly for the duration of your leasing period.
- At the end of your contract, return the vehicles to us, and if you have decided to extend your contract with an updated model you can pick it up straight away!
Find out if your company would qualify for a lease deal with our simple guide to business leasing eligibility.
Benefits of fleet leasing
There are numerous benefits of fleet leasing your company vehicles. The specific factors that apply to your company will depend on the type of business you run and your unique needs. However, the main reasons to consider fleet leasing are:
- It’s cost-effective and often cheaper than buying vehicles outright because you are only paying for the depreciation of the vehicle, not the full value.
- Leasing allows you to establish a fleet of vehicles without large upfront costs.
- Hassle-free vehicle use with no responsibility for repairs or road tax.
- A fleet of branded company vehicles will make your company look professional.
- A company car is a great employee perk, attracting the best talent and allowing you to offer a slightly reduced salary.
- There is no need to dispose of your vehicle at the end of the lease period, taking away the stress of selling.
- You will always be driving the latest model with regular updates, meaning you benefit from the best functionality, features and safety mechanisms.
- If you are leasing vehicles for business use, you can claim up to 100% of the VAT back from your monthly rental cost.
- A leased fleet of business vehicles can be ‘off’ the balance sheet.
- Businesses can also offset up to 100% of lease rental against corporation tax, depending on the carbon emissions of the vehicles.
You can find out more about the perks of vehicle leasing in our guide to the benefits of business leasing.
Considerations of fleet leasing
When you’re deciding whether to go ahead with fleet vehicle leasing - and choosing which plan is right for your business - there are several factors to take into consideration. Here are a few aspects to consider:
- Which kind of vehicle is best suited for your needs?
- What will you be using the vehicles for, and how often?
- What is your monthly budget?
- How many people do you need to be included as drivers?
- How long do you want your leasing plan to last?
- How often do you want to update and replace your fleet vehicles?
What about fleet management?
One of the primary benefits of fleet leasing is that there is less risk of extra cost or inconvenience should one of your vehicles encounter a fault. However, fleet management is still an important part of any company vehicle system, whether owned or leased.
Luckily, at Rivervale Leasing, we offer tailored fleet management services, allowing you to focus on your core business tasks. Our expert fleet management professionals work to offer you a range of solutions, including:
- Fleet management strategy advice and policy construction
- 24/7 Driverline
- Fixed cost or pay on use vehicle maintenance
- Short and medium-term rental services
- Discounted vehicle finance
- Duty of care management
- Fleet administration (MOT's, RFL, Fines, MID etc)
- Accident management
- Green fleet consulting
- LCV Consulting
- Fuel management
- Vehicle tracking and monitoring
- Vehicle logistics including vehicle storage and reallocation
- Grey fleet management
- Staff benefit solutions - preferential vehicle discounts and services