Can leasing save you money on business vehicles?

By Anita Jaynes on 27 June, 2016

While large organisations typically lease their vehicles, small and medium sized businesses often buy vehicles outright if they have spare cash, or use finance from a dealer or take a loan from a bank. Yet leasing can bring the same benefits to smaller companies as it does to the largest multi-nationals. So why don’t more people do it?

Paul Marchment, SME Development Manager at local vehicle leasing specialist, Arval UK, says a lot is down to knowledge: “Every year, the company undertakes research amongst hundreds of businesses of all sizes. What we find is that smaller companies are just not aware that leasing could be a very cost-effective and hassle-free option for them, even if they only need one or two vehicles.”

Paul says smaller businesses will often be advised to buy a vehicle at the end of a tax year if they have spare cash. But, as he adds, “Why tie up money in company vehicles when you can invest in company growth?”

A good example is Swindon-based mail delivery business DPR Transport. By taking out a lease on three new vans, the business has managed to halve the cost of running the vehicles by switching to leasing.

Its owner, Dave Ranford, took the decision to opt for Arval’s Total Care insured vehicle contract, which rolls all of the running costs into one monthly rental.

Even with all of the running costs included, Dave said the cost of leasing the vehicle was around half the cost of short-term rental, including road tax, which had been his previous option. “All I have to do is put fuel in the vans. Everything else is taken care of and even so, the cost has almost halved from the rental vehicles.”

Leasing has also enabled Dave to shift the responsibility for managing the vehicles to Arval so he can focus on the company. “In my business, customer service is key. Delivering parcels sounds easy, but it is a highly pressured environment. You have to get it right first time.

“Leasing has helped me to lower transport costs, reduced the hassle and admin of operating vehicles and given me peace of mind as I know the vans are new and being properly maintained by experts.”

Visit Paul and the Arval UK team at South West Expo, Swindon on Thursday June 30 between 9am-3pm. You will find them on stand 17. Attendance is free for delegates, but registration is essential. Click here to book your space.