When deciding how to fund and manage their fleet, more and more smaller businesses are turning to leasing rather than purchasing the vehicles themselves, for reasons include:
Fleet funding is the leasing or purchase agreement that you put in place to finance your company vehicle arrangements. There are several funding options available:
Each funding option is designed to cater for different, specific fleet needs.
Although a simple concept in principle, Fleet funding can be a minefield if you’re not properly prepared. With so many companies, deals and advice out there in the market, it’s easy to get confused about which option is best for your business. What’s more, recent changes to UK tax law mean that the cost of funding fleet vehicles can vary considerably from one funding method to another.
The type of funding you choose can make a significant difference to your overall costs, risk and flexibility – so it’s crucial to understand everything properly before making your decision.
Lex Autolease can help to demystify the Fleet Funding market and help you to understand more about the options available to you, and their impact on your business.
Because we work with such a wide range of businesses, we understand that fleet funding needs vary widely. You may want ways to release capital or reduce your tax liability for example.
Whatever your situation, we can help you to find the right solution - whether you want to keep your vehicles on or off your balance sheet.
If vehicles are on your balance sheet, the value of your assets will be increased. These funding methods are ideal for asset-light businesses that want to benefit from the cash advantages of vehicle leasing.
If vehicles are on our balance sheet rather than yours, you'll have less tax liability and won't have to worry about depreciation - perfect for businesses that want to run company vehicles, but don't want to own them.
Choosing the right funding method for your fleet depends upon a number of factors and each situation can be different. As a general rule, it is helpful to consider cars and vans separately. The following are some pointers: