Leasing Vs. Purchasing Fleet Vehicles
Business car and truck fleet leasing services give you the flexibility to tailor each of your vehicles to meet the exact requirements of your company’s needs and objectives while improving your cash flow and lowering your monthly payments.
The Benefits of Fleet Leasing
It’s common to want to compare the benefits of leasing a fleet vehicle vs. buying it. The response you will hear to this question is that leasing simply lowers the monthly cost of a vehicle. While this is certainly true, the benefits of leasing your fleet vehicles go far beyond just lowering the monthly cost of the vehicle including tax savings*, reduced maintenance costs and less waste. Leasing also aligns well with economic life cycling, resulting in the ability to operate a more current fleet of vehicles.
We’ve created this leasing vs. buying comparison chart to outline just some of the benefits of leasing your fleet.
*Please consult your company accountant for detailed benefits information.
Fleet Leasing vs. Buying Comparison Guide
| Leasing | Buying |
|---|---|
| Financial life equals useful life. | Your company’s book value is often not in line with market value at time of disposal. |
| A leasing program provides the discipline to enforce standards and reduce vehicle acquisition costs and administrative costs. | Vehicle diversity and lack of standards increase both vehicle acquisition costs and administrative cost. |
| Replacing leased vehicles is cost effective and simple. | Upgrading owned vehicles is capital intensive and cumbersome. |
| A fleet leasing program eliminates excess. | Purchasing intensifies vehicle fleet build-up. |
| Lessor assumes disposal responsibility, maximizing returns with automotive expertise. | Disposal of vehicles is time consuming, expensive, and lacks the application of automotive expertise. |
| Low monthly lease fee | Capital Intensive |
| Leasing allows cash flow flexibility. | High budgeting and forecasting costs. |
| Vehicles are cycled under a carefully planned program, reducing maintenance expenses, improving corporate image and driver morale. | Vehicles often retained beyond optimum life, resulting in higher maintenance costs and poor image, reducing driver morale. |
| Only pay for the portion of the vehicle you use | Pay or finance the entire vehicle cost. |
| Flexible | Inflexible |