Leasing your fleet could be the way to stay ahead of the competition as environmental changes loom…
Traditionally speaking, businesses in the bus and coach sector tend to buy their vehicles outright.
But, could now be the time to reconsider your purchasing habits and look at leasing your fleets?
Whilst buying the vehicles means you own them, it also means that you take on the residual risk associated with them, and when it comes to the end of their ‘useful life’, you are stuck with the responsibility and cost of disposing of them.
With pending environmental changes on the horizon and the constant evolution of technology, however, the ‘useful life’ of a fleet is becoming harder to predict.
In 2021, the government will introduce ‘Ultra Low Emission Zones’ (ULEZ), meaning that, if your vehicles don’t meet the requirements, you could be charged up to £100 per day, and end up losing even more money on your fleet.
By leasing, this residual risk you have when you own the vehicle outright is eliminated as ownership of the vehicle never fully passes to you and it gives you the capability of being able to swap the vehicles for a newer model on a regular basis.
You’ll still be responsible for the maintenance and upkeep of the vehicle(s), though you can usually deduct the full cost of the rental from your taxable income as a trading expense.
And there are different types of leasing available, including operating leases.
This sort of leasing works in the same way, apart from that you will only pay for the vehicle and use it for its pre-agreed ‘useful life’ rather than leasing it until you’ve paid off its total value, meaning your payments are lower.
As new technologies and regulations continue to come and go, being able to adapt your fleet easily to adhere to rules or to stay ahead of the curve could be what sets your business apart from the competition, and leasing could be the way to do it.
If you’re thinking about changing your fleet ahead of the regulations or just want to update your vehicles, call us on 0115 958 6872, email us at firstname.lastname@example.org or get an online Decision in Principle using Asset Finance Compared.
If you’re a bus and coach manufacturer looking to provide your customers with easy access to finance, click here to learn about our Supplier Partnership Programme.