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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