Why leasing can often be better than outright purchase.

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Leasing vs Purchasing

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Business vehicles
Why leasing beats purchasing

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No guesswork.
No contest.
No depreciation risk.

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Leasing vs purchasing your company vehicles.
Sometimes, it’s a fairly even fight.

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Sometimes, it’s an absolute
no-brainer.

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In most cases – whether they’re commercial vans
or company cars – leasing tends to beat
purchasing, hands down.

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Here’s why.

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You don’t have to worry about depreciation
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When you buy a vehicle outright, depreciation
cost is your risk.
The moment a new car or van is driven off a forecourt,
thousands of pounds are driven off its value.
In 2015 LeasePlan analysis revealed that on average,
12 month old used vehicles have depreciated by 35%.

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Now that’s an average we’re talking about. So some
vehicles had depreciated more, and yes some less.
Depreciation is always a gamble when you buy.
When you lease, you can forget about depreciation
risk. Simply put, it becomes our problem, not yours.

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Your cash flow gets healthier
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The money you would have spent paying for your
vehicles up front can now be put to better use.
(Like actually growing your business.)

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A buy-back bonus.
If you already own your fleet, you stand to see
an even greater cashflow boost.
Many leasing providers may buy your existing
fleet from you, and lease it back – giving you
a significant, instant cash injection.

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Your costs are totally predictable
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Here’s a question. How much does your business
currently spend on its vehicles?
If you don’t know, you might be surprised.
And not in a good way.
For many small and medium sized businesses,
buying, running and maintaining vehicles is their
single biggest cost.

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It’s an unpredictable cost that’s time-consuming
to track, and hard to plan for.

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You simply don’t know when a tyre’s going to blow,
or a van’s going to get hit at the traffic lights…

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To make it tougher, the cost of service and repair
may well rise over the course of it’s life.

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(And the older your vehicle gets, the more work
it’s going to need to keep it on the road. And if you’ve
bought that vehicle, costs will spiral as it ages.)

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When you lease your business’ vehicles, they
become a more predictable cost.
With service, maintenance and repair included in your
leasing contract, you know what you’ll be spending
next month, next year and in three years time.

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(Plus if you lease with LeasePlan, with over 150,000
vehicles in the UK our service network service network
is entrusted to give your drivers the best possible
service every time. We’ll even make sure that there’s
a tyre bay waiting with their name on.)
The result?

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• You see your costs up front so budgeting is easy
• You spend less time on service, maintenance & repair
• Whatever happens on the road, your finances aren’t on the line
• You only ever have one invoice to process at the end of the
month (not multiple invoices for multiple services and repairs)
A simpler, more predictable life.

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You get to focus on the stuff that matters
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When you own your vehicles, keeping
them roadworthy doesn’t just drain
your budgets. It wastes your time.

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If a salesperson’s car breaks down on the way
to a meeting, it’s up to you to sort it out.
We’re guessing that – whether you head up the sales
team, the Finance or Procurement department or
even the whole business – you’ve got way better
things to do.

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Lease your vehicles with maintenance,
and the driver rings us, not you.

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We take charge of the rescue and repair, liaising
with a garage, and organising a courtesy car.
You get on with your job.

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Your drivers feel better rewarded – and safer
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• A motivating force
• A reward for hard work
• A sign – to the rest of the world – of your brand values
If you offer your employees ‘perk’ cars, you do it for a reason.
You know offering the best models will help your business
attract the best people. Those vehicles need to act as:

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When you lease, you can upgrade to the latest make &
model every few years – ensuring your vehicles make the
right impression on drivers and customers, everytime.

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You can get moving towards your
sustainability goals
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Cost control could leave you looking at a red light
when it comes to meeting your green goals.
When you buy, you may need to hang onto those
vehicles, even while more economical, low-emission
options come on to the market.

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When you lease, you can upgrade to the latest,
greenest vehicles every time you renew your contract.

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That means a lower carbon footprint and lower fuel costs.
(This is all starting to add up isn’t it?)

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• Provide emissions reporting
• Develop leasing policies around your sustainability goals
• Create reward schemes for drivers who choose
low-emission models
As your leasing provider we’ll also work with you to:
Which can really make a difference.

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You get all this, and you still stand to save money

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A life free from vehicle depreciation risk and with
fewer costs (and ones that are more predictable),
where you’re able to budget more effectively, and
you’ve more time to do your job, your drivers are
happier and safer, and your business is greener?

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You’d think that would cost something extra.
But here’s why leasing wins over purchasing so often…

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When you consider the whole-life cost of your vehicle fleet
– purchase costs, vehicle management, administration,
national insurance contributions, fuel, insurance, servicing,
maintenance, resale – leasing will save you time to focus
on your growing business.
You get all that good stuff. And, at the end of the day, it can
cost you less than if you bought your vehicles outright.

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39lpint.com Source: LeasePlan 2015 Customer Satisfaction Survey, XXXX participants.
That’s it. No depreciation risk. No stress.
No wasted hours. No disappointed drivers.
No slipping backwards on your business goals…
No contest.
of our customers would
recommend leasing.
(With LeasePlan).

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Ready to see what leasing could do for your business?
We should probably talk.
To learn more about leasing for your business download
our eBook: The eight levers of vehicle optimisation
< Awaiting image >
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The eight levers of
vehicle optimisation
For a business that’s going places

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