3 Benefits to Leasing Your Fleet

You know you need a fleet of vehicles, but should you lease or buy? It’s a common question that businesses have and there’s no one single answer for all companies. However, a growing number of businesses are opting to lease vehicles. It seems strange. After all, you’ve been told your whole life than buying (or owning) is cheaper than renting. But there are hidden benefits to leasing that no one is talking about.

Vehicle Maintenance Is Easier

When you own your own fleet, you’re responsible for maintenance. Usually, you don’t worry about it in the early years of the fleet. New vehicles just don’t have a lot of problems. Then you hit 30,000 miles and your service problems start. New brakes, new filters, and fluid flushes are almost always necessary. Another 15,000 miles and more maintenance is required. By the time you hit 60,000 to 80,000 miles, you’re ready for a new timing belt – that gets expensive.

At over $1,000 per vehicle, you could end up with thousands of dollars just in maintenance costs. That doesn’t include repairs from accidents and premature wear and tear. Remember, you’re putting a lot of miles on these vehicles. They’re being abused more than a non-commercial vehicle would be.

When you lease a vehicle, you can trade it in or get help with the maintenance. Some leasing deals cover all maintenance and comp you for at least some repairs. Not only does this take the stress off of you finding a reliable mechanic, it cuts down on the cost of ownership, since you don’t actually own the vehicles.

You Can Outsource Complex Processes In Fleet Management

Good management is expensive. Keep that in mind as you look into fleet leasing. When you own everything, the buck stops with you. You’re responsible for all daily management, but also for the more complex aspects of fleet management like depreciation, swapping out vehicles, vehicle rotation schedules, and vehicle replacement schedules. With leased vehicles, a lot of this is done for you.

Get Top-Of-The-Line Vehicles

When you buy a vehicle, it’s yours. But that also becomes a liability as the fleet starts to age. Leased vehicles supply you with fresh, new, vehicles that are always “top of the line.” Compare this to buying a vehicle. It’s an ongoing cost either way, since you have loan payments and repairs with a purchased vehicle. The difference is that owning, once again, sticks you with an aging vehicle that starts showing its age quickly.

It’s not as easy to trade them in either. Why not? Because new vehicles always depreciate faster than you can pay off the loan. If you buy used, you’re not getting the highest-quality vehicle with all of the latest technology and safety features – something you might want if you’re transporting clients.

While leasing does come with mileage restrictions, these are almost always negotiable. Talk with your leasing company about your mileage needs. Remember, you’re running a business. The thing that matters most at the end of the day is how much it costs to maintain a fleet and how much profit you make from it.

Charles Thayer is in fleet management. He shares his experiences on business blogs to help others understand their options and make smart decisions.