Owning a fleet can be expensive. Buying vehicles outright means you spend a lot of money on each vehicle you have in your company. Furthermore, you have to consider how you will dispose of the cars when it comes time to replace them. After a set amount of miles or years, you do have to replace your fleet vehicles. If you pay for them the disposal can be an issue. You may have to sell the fleet before you can actually buy more cars.
There is a solution if you are suffering from issues with buying new fleet vehicles. Instead of actually paying in full for the vehicle you could use contract hire. This is a type of vehicle leasing where you pay a certain monthly payment for the vehicles you have and at the end of the lease you turn it back over to the leasing company. This eliminates the disposal problems you have faced in the past. There are plenty of other benefits we will discuss below to help you understand this process.
Let’s take a look at the vehicle running benefits first. You have a reduced amount of administration. This occurs not only in the payments, but also in keeping up with the different vehicles you may have. The leasing company can offer you an invoice with all of the vehicles on it for one payment rather than trying to keep up with how many car payments need to be made. This can happen even if you leased the vehicles at different times. For instance you may have leased 10 cars in May, and then another 10 in July. All of the cars can be on one invoice to reduce the amount of administration your management has to do.
With leasing vehicles you are able to get advice and support about your situation. You can even get vehicle assistance should you require it. Many of the leasing companies offer an optional maintenance product in which you are able to get the car serviced when it is needed without paying out of pocket during the process. Other optional products include breakdown cover, vehicle replacement, and GAP insurance.
Gap insurance options allow you to cover the vehicle should it be damaged as a total write off. You would not have to cover the outstanding finance in the event this happens. It can be a decent position to be in.
