Leasing vs buying – why leasing is the wiser choice.
Published on 25/07/2016
Buying a new car or fleet of vehicles should be a relatively straightforward experience. You choose the make and model, agree on the finances and away you go, right?
Sure, for some people things may work out this way but, for individual consumers and large businesses alike, the process of acquiring new vehicles means a significant investment and, with many budgets tight and requirements broad, it’s essential to get the right vehicles for your needs.
This is where it’s wise to consider all your options – from make and model to finance to long term maintenance, there’s a lot to think about. So just what are the differences between buying and leasing vehicles and how could leasing benefit you?
Choosing a make and model
First things first, the make and model – some people will undoubtedly be brand loyal or have an idea of the type of vehicle they’d like, whether it’s from previous experience or recommendation. Those people will then want to move on to think about costs, but what about those who don’t know where to begin? What are the options?
If you’re buying a vehicle, you’ll need to think long term, as the running costs will be an ongoing investment for however long you own the vehicle. If you’re planning to resell further down the line, you’ll need to consider what the vehicle’s mileage and service history will look like to a potential buyer. For businesses acquiring a large amount of vehicles, this is especially important, as replacing a fleet can be a time consuming and expensive task. A vehicle that depreciates in value isn’t a wise long term option.
Buying from a car dealership stocking one brand of vehicles means the salespeople will only be interested in the brand they stock. While they may know a lot about the make and models, ultimately, they don’t want you to look elsewhere and compare vehicles.
This is where leasing becomes an attractive option – not only can you find out about multiple makes and models in the same place, a leaser’s advice will be unbiased, as it makes little difference to them which make and model you go for. This means a leaser is more likely to listen to your business or individual requirements and can advise and recommend accordingly. With a leaser, the service is long term, so leasing teams want you to be satisfied you’ve made the right choice, as they will still be dealing with you further down the line.
While choosing vehicles based on costs alone isn’t wise, no one can argue that both businesses and individuals want to get a good deal, and ensuring one of the largest investments you’ll make is cost effective is high on a prospective client’s list of priorities.
One of the most common oversights we see in the automotive industry is clients basing their decisions on initial outgoings. It’s always advisable to think of a vehicle as an investment rather than something to get you or your employees from one place to another. This means thinking about all the added on financial responsibilities that come with buying a car – maintenance work and repairs don’t come cheap, as well as buying parts.
If you lease vehicles, the option is there to have a full maintenance (finance company maintained) lease. This is seen as a wiser economy, as clients can fix maintenance costs so, should the worst happen, they’re already covered. The initial expenditure is advisable, especially for fleet managers, to avoid time consuming and costly repairs further down the line.
Service might not be rated most highly on the vehicle acquirer’s priority list, but it absolutely should. Considering you’re investing a significant amount of your salary or business’ budget in getting your new vehicles, you’re absolutely right to expect the service not to end with handing over the keys.
Investing in good staff in the automotive industry is important, particularly for businesses that require a large amount of vehicles. Not only do employers have to think about getting high performing vehicles, they also need to consider driver requirements and the duty of care they have towards their employees while they use them.
Ensuring vehicles are compliant adds extra time onto the process, which, in turn, costs businesses money. If you lease a vehicle, there will be a team of experts on hand to give advice about all aspects of fleet management, and that doesn’t end once your team have started navigating the motorways.
Managing a fleet is about more than just providing the right vehicles - guaranteeing optimum performance is a key factor in ensuring a business runs successfully. This doesn’t end with buying the right vehicles.
Once you’ve been sold a car, the management of the vehicle is your responsibility but, at Neva, we don’t believe this ethos sits well within the leasing sector. With many of our clients' large businesses managing fleets on a daily basis, we believe the key to great service is to go the extra mile.
That’s why, along with our team of specialist fleet management staff, we created C-Fleet. With this fleet management app, fleet managers can track vehicles, find out in quick time about break downs or roadside issues and organise repairs and cover all in one place.
If you’d like to find out more about the leasing options available to you, or see how C-Fleet can help fleet managers, contact our team today on 01825 720900.