So, you want to build a corporate fleet of distinction, high quality and timelessness - where do you start?
Most new fleet operators will look at leasing or buying their cars, and there are plenty of pros and cons for either choice.
We know most corporate fleet operators will make a cost-conscious choice, especially when it comes to luxury or new model cars, but good fleet operators should have a full view of the market.
They need to be aware of the critical differences between leasing and owning a corporate fleet, and how each path represents a certain type of opportunity for the discerning fleet operator.
Leasing vs Buying Comparison
So, what is the difference between leasing and owning a business car fleet?
Leasing a fleet is where a rental company or corporate fleet owner will not purchase cars outright but will lease them through a car leasing arrangement for a predetermined amount of time.
The benefits of leasing a corporate fleet are:
Lower upfront costs and predictable monthly payments
Less maintenance and repair costs
In most cases, access to newer cars
The drawbacks of leasing a corporate fleet are:
No equity and no ownership
Buying a fleet is where corporate fleet owners will buy a fleet from a dealership or fleet management company outright.
The benefits of buying a corporate fleet are:
High rate of equity for future sales
No mileage restrictions
No lease termination fees
The drawbacks of buying a corporate fleet are:
High upfront costs
Maintenance and repair costs
Varying interest rates for repayments
Sometimes limited choice of stock