What is a Fleet Lease Vehicle
We frequently hear the question: "What's a fleet vehicle and should you get one for your business?" Before we attempt answering the question, let’s take a deeper look at fleet cars.
The meaning of a fleet vehicle
So what is a fleet? A fleet car is a vehicle owned or leased for business use. A variety of organizations may use fleet cars to provide vehicles for sales representatives, management, and delivery. A fleet vehicle can also be used for taxi and vehicle rental companies. Depending on the size and needs of the fleet, a fleet manager might be responsible for it.
Should I buy a van for my fleet?
Before deciding whether to buy a vehicle for your fleet, it's a good idea look at both fleet purchasing and fleet leasing. Some businesses prefer to pay a large upfront payment but not incur monthly fees. However, this would mean a larger capital outlay. It should also be noted that vehicles appreciate quickly. The purchase of a vehicle may be more desirable if the company is well-established and has a lump money.
Fleet leasing allows customers to select the vehicles they need, then pay a monthly instalment. This arrangement is ideal for businesses as it includes maintenance of the vehicles, which means that there are fewer things to worry about.
Here are some reasons to buy a fleet vehicle
It is dependent on what type of business you are in, the reasons why you want to purchase a fleet vehicle may vary. You may need to make deliveries, go to clients often, or provide support to management. Staff can benefit from having a luxurious vehicle that is high-spec and well-maintained. It is easy and simple to lease a van or car fleet. It is very easy to lease or buy more vehicles than 10, which can attract incentives from the manufacturer. Ask your vehicle provider for information about what type of service they provide if this is the first time you have purchased a fleet.
Here are some reasons to buy a fleet vehicle
It is a good idea, in order to evaluate the pros and con's of buying a fleet vehicle for corporate use, to determine the estimated cost. You should also consider fuel, insurance, maintenance and other costs. The appointment of a fleet manager, who will keep track on the vehicle's requirements, is also a benefit.
Pros
- You are free to drive as far as you like, with no restrictions. (Note: Vehicles with higher mileage may sell for a lower amount).
- Purchase a used automobile - After checking its condition, spend less and get a good quality vehicle.
- A wide selection of make and models - purchasing tends provide greater access to a wider array of vehicles with a variety of types.
Cons
- As part of the company's responsibility for servicing the vehicles, maintenance and compliance are your responsibility. For additional assistance, the fleet manager may be hired by the company. If you decide to use a Fleet Management Service instead, all of this would be included.
- There may be a lower residual value - selling your car does not guarantee the price. Upkeep for vehicles that have reached retirement may be more expensive.
- You will need more or fewer vehicles depending on the season. This is not possible with leasing, which allows you to be flexible.
There is no clear answer to the question: "Should fleet vehicles be purchased for your business?" The answer will depend on your size, type of business, and how long your operation has been going. Before you make a decision about whether or not to get fleet vehicles for your business, consider the potential effects on your short-term and long term financial performance.
