Taking out leases for the vehicles your business uses is one of the most savvy decisions that business owners can take. With leasing you can work a lot of good on the finances whilst simultaneously managing your fleet of vehicles in a more operationally efficient manner.
Leasing cars through your business offers a strategic advantage, with many different benefits and with different kinds of agreements which can be utilised to align perfectly with goals like cost-efficiency and resource management.
Firstly, leasing removes the issue of having depreciating assets in the form of purchased vehicles on your books. Unlike those costly purchased vehicles, which lose value the moment they leave the showroom, leased vehicles are not your liability when it comes to depreciation, keeping your business’ balance sheet healthier.
Another one of the key advantages of choosing to lease a vehicle is that it provides much more predictability of costs throughout the lease term. This predictability, combined with inclusive maintenance options, ensures that there are few, if any, unexpected expenses, thus improving your ability to forecast and manage cash flow.
Then there are the tax advantages that come with leasing vehicles commercially, businesses can also claim up to 100% of the monthly payments back through their corporation tax bill along with 50% of the VAT. There are other specific tax advantages that apply to maintenance packages alongside business lease vehicle agreements as well.
But, before you go diving head first into leasing your company vehicles, there are going to be quite a lot of things you need to be aware of first. To guide you through this journey, we’ve compiled 10 essential tips that will help you navigate the process of leasing a business vehicle that will hopefully help you avoid any unnecessary stress.
Yorkshire Fleet’s Top 10 Tips: Our Business Car Lease Advice
Just as with any large purchase for your business, before you go ahead and start signing vehicle leasing agreements on the dotted line, you’ll want to arm yourself with a good level of knowledge and consider several key factors. These considerations not only make you more likely to choose the most suitable lease arrangement for your business but also help in avoiding potential pitfalls that could lead to unnecessary stress and financial strain.
1. How Many Miles Will Your Employees Be Driving?
You’re going to need a good understanding and somewhat accurate prediction of what the annual mileage of your fleet is. Knowing this is critical when it comes to choosing the right lease and underestimating can lead to excess mileage charges, while overestimating means you might pay for miles you don’t use. We suggest a detailed analysis of your employees’ driving patterns to choose a lease agreement that closely matches the mileage you expect the vehicles to be doing each year.
2. What Type Of Vehicle Is Best?
It’s probably going to be the case that you’re already vaguely aware of what kind of vehicle you need depending on the nature of your business. Trades and logistics businesses might lean towards vans for their space and durability, while more corporate kinds of companies are likely going to prefer executive cars for the level of sophistication they offer. When you work with a lease partner like Yorkshire Fleet, you’ll be able to lean on their professional experience to choose a make and model that’s most practical.
3. How Many Vehicles Do You Need?
If you’re looking at leasing a whole fleet of vehicles, then the very next question that’s going to arise is; how many vehicles are going to be in the fleet? Too few vehicles is going to limit your operational capacity, whereas too many vehicles is going to leave you with some large unnecessary expenses. Making sure that you take an analytical approach to examining your business activities is what’s going to make getting the right fleet size easier.
4. Consider Switching To Electric
Electrifying your fleet naturally offers long-term savings on fuel, reduces carbon emissions, and the ability to leverage tax incentives as a way of saving more money on top. However, it’s essential to consider your typical routes, the availability of charging infrastructure, and vehicle range, because whilst access to charging is improving throughout the UK, you could still have routes that are out of an EVs range.
5. Consider The Benefits Of New Or Used Vehicles
Because there is no huge outright payment on a business vehicle lease, many will opt for a brand-new top-of-the-range vehicle. But. that’s not to say that there isn’t scope to lease used vehicles and get just as much value for money. While new cars offer the latest technology and efficiency, used vehicles can provide significant cost savings. At Yorkshire Fleet, we would always recommend that you choose new vehicles, however used vehicles are available and we can help you secure the lease best for your business no matter the preference.
6. Know How To Choose The Right Vehicle
Because this is a vehicle that is going to be detrimental to your businesses day-to-day success, and not just a personal car you’re using for leisure – the choice of vehicle is a lot more than just make and model. You’ll need to make sure that the vehicle you choose can handle everything it needs to as part of your business and also meets yours or your drivers’ needs for comfort and safety. Making sure to do your research and also consult with your lease partner on vehicle options is going to be crucial in making the right decision here.
7. Set Up Processes to Manage How the Vehicle is Used
If you want to make sure your vehicles have longevity and stay as effective as possible in the long-term then you’ll need to manage the fleet well. Try to ensure you’ve thought of ways to implement strategies that prevent reckless or fuel-inefficient driving, as these can lead to unnecessary wear and tear or higher operating costs. For electric vehicles (EVs), establishing on-site charging protocols ensures that vehicles are always ready for the day ahead and will keep any potential downtime to a minimum.
8. Make Sure You’ll Be Able To Manage Driver Behaviour
The behaviour of drivers has a profound impact on vehicle condition, safety, and overall fleet costs. If you haven’t already, then make sure you are implementing measures like driver training programmes to educate your team on safe and efficient driving practices. If you’re wanting to go one step further than this then also look at using things like black boxes which can be instrumental in monitoring driver behaviour, providing real-time feedback and alerts for any dangerous driving incidents which you can then deal with internally.
9. Make Sure You Include Maintenance In A Lease Agreement
Hopefully you’ll have done everything possible to eliminate the wear and tear as well as mitigating the chance of accidents. But, even with all of that careful planning, you still won’t want to be left with a large and probably unexpected bill should something go wrong with one of your vehicles. So, incorporating service and maintenance in your lease agreement can prevent unexpected repair costs and keep the fleet in tip top shape. There will be different levels of servicing and maintenance available depending on what is needed. But make sure you get this included, no matter what!
10. Understand What Happens At The End Of The Lease
As your lease term concludes, it’s vital to know your options. Depending on the kind of lease agreement you have taken out there will be a few different outcomes when it ends. You may have to purchase the vehicle from the leasing company, you may have to return it and start again, or you may return it and have another vehicle take over the lease. At Yorkshire Fleet, we provide comprehensive advice on end-of-lease options, ensuring a smooth process with no nasty surprises.
Choose Yorkshire Fleet for Seamless Business Vehicle Leasing
Although you certainly need to take the advice from above before you start looking into the leasing options, why not give the team at Yorkshire Fleet a call whilst you’re here?
We’re more than just a vehicle leasing company, we partner with you to ensure your business vehicles meet your needs and surpass your expectations! Our approach is customer-focused, ensuring we understand your requirements in depth to offer bespoke solutions. With access to a wide selection of vehicle makes and models, we guarantee that no matter your industry or business size, we can source the right vehicle for you.
Ready to discover how Yorkshire Fleet can enhance your business mobility and efficiency? Contact us today to book a consultation and take the first step towards a tailored vehicle leasing solution that drives your business forward.
