Tuesday 25 November 2008

SME's Turn to Leasing In Uncertain Times

Once again the Fleet News is banging the leasing drum as fleets purchasing their vehicles suffer from decreasing resale values.

6 months ago we carried out a Whole Life Cost analysis of a Contract Hire v's Outright Purchase on a standard fleet car , 22,000 miles/year over 3 years.

Without getting too technical (leave that to the accountants) we concluded that Contract Hire - in this particular case was just in favour by a few pounds. The same analysis today suggests leasing is £2000 better, due mainly to the losses made at disposal.

So, leasing in a downturn:
  • Low Deposit, typically 3 payments
  • Set monthly payments ease cashflow
  • Set maintenance budgets - avoid future rises
  • Pass the risk to a 3rd party - why worry about resale values?
  • Fabulous deals available due to attractive discounts to firms like us
  • Brokers like us to seek out the deal for you

If your business requires the professional advice that can save £2000 on just 1 fleet car, feel free to give me a call on 0161 655 3200.

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