What is a Fleet Lease Car?

 

It's a common question: "What is fleet vehicle?" Before we answer that question, let us take a closer look at fleet vehicles.

Meaning of fleet vehicle

What is a fleet vehicle? A fleet vehicle can be a motor vehicle owned by or leased to a company. Many types of organisations might use fleet vehicles to deliver goods, or to provide vehicles to their staff. Taxis and vehicle rental businesses may also make use of fleet vehicles. It may be managed by a fleet manager, depending on how large the fleet is.

What should I do if I want to buy a vehicle in a fleet?

Before you decide whether to buy or lease a fleet vehicle, you might want to consider both fleet purchase and leasing. Businesses may prefer to buy the vehicle outright at a higher upfront cost but with no monthly fees. It would however require a substantial capital outlay. Also, vehicles depreciate rapidly. A longer-established company with a lump sum may make it more attractive to buy.

fleet leasing lets you choose the vehicles you require and then only pay a monthly invoice. The cost of maintenance for the vehicles is typically included so that you as a business have less to do and monitor.

Why you should get a fleet vehicle

You may have different reasons for purchasing a fleet vehicle depending on your business. Perhaps you are required to transport clients, make deliveries or manage the company's vehicles. Employees can benefit from a luxury vehicle of high quality that is equipped with all the necessary features. It's easy to lease a fleet car or van. A commercial fleet is one that includes more than ten vehicles. Manufacturers may offer various incentives if you purchase or lease these vehicles. Always speak with your vehicle provider to find out the type of service that they can offer if you are making your first fleet purchase.

Why you should get a fleet vehicle

To evaluate the pros and cons to buying a corporate fleet vehicle it is worth calculating the cost including fuel, insurance and maintenance. A fleet manager will help you keep track of all vehicle needs.

Pros

  • You have unlimited mileage. You can drive as many miles as your heart desires. Note that high-mileage vehicles might be more expensive when they are sold.
  • You can purchase a used vehicle for less money and still get a great vehicle.
  • Large selection of make/model options - Buying tends to offer you greater access to a wider variety of vehicles and a range of types.

Cons

  • You are responsible for maintaining and complying with the vehicle's roadworthiness. It is also part of the company’s responsibility to maintain the vehicle. A fleet manager may be required by the company to help you keep up with all of this. All of these would be covered if you use the Fleet Management Service.
  • It is possible that the resale value of your vehicle will be lower. However, there are no guarantees about what you will get for it. Vehicle maintenance can get more expensive as vehicles age.
  • You may need more vehicles at different times of the year to keep up. The leasing option allows for flexibility, but not when you purchase vehicles.

There is no one right answer to the question, "Should your business get fleet vehicles?" This depends on your business size and experience. You should carefully consider all of the pros and con's before you make a decision. Also, think about how it will affect your business in the long-term.

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