What Is Fleet Leasing?

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.

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.

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