Hundreds of companies nationwide depend on vans, pick-up trucks and other commercial vehicles to carry out their business. From manufacturing to delivery to logistics, the necessity for an effective and low-cost fleet is paramount across multiple sectors.
But how can your business put vehicles on the road in a financially viable way. With the rising purchasing cost of commercial vehicles, ensuring that your firm has the appropriate number and quality of vehicles and that they comply with government maintenance guidelines can create a headache for even the most experienced business owner.
So, we thought we’d share ways our commercial vehicle team can help you resolve these problems. From flexible leasing to comprehensive maintenance cover and driver metrics, we’re sure that our team can provide the fleet solution you need.
One of the most attractive features of leasing a commercial vehicle is the low initial outlay that companies need to front. Putting down the funds to purchase a sufficient size and quality fleet to meet your business needs is bound to have a significant impact.
As we mentioned above, the cost of purchasing commercial vehicles such as vans is increasing, meaning that this problem is likely to become more severe in the future.
By utilising a commercial van lease, businesses can avoid this considerable up-front cost by splitting the outgoings over monthly payments. This is an effective option for smaller companies that may not have the financial capital to purchase their fleets or larger firms where leasing can free up funds to reinvest in other areas.
All our commercial van and car leases include a maintenance and tech support package to ensure your fleet is kept up and running all year round. Plus, this is all managed by our dedicated team of commercial fleet controllers, ensuring that all servicing and repairs are handled in line with manufacturers’ standards.
In contrast, companies choosing to purchase their fleets would have to manage all maintenance and tech problems in-house, resulting in onboarding more staff or engaging with costly external maintenance teams. With the resulting increase in automotive repairs and labour costs, this could see outgoings rise for those choosing to purchase rather than lease.
When managing a business, reducing the time and money spent on administration is a priority for many. Purchasing your fleet can threaten to increase the energy and capital needed for administration. In addition, dealing with areas like maintenance and invoicing, contacting suppliers and disposing of older vehicles can add a significant burden to the administrative sector of your business.
By leasing, you can consolidate your administrative tasks into one easy monthly payment covering all maintenance and leasing costs over the life of the lease, including invoices from suppliers. This reduces the funds and staff time invested in fleet administration, freeing up your business to invest in other areas.
Flexibility is increasingly important for companies as it allows you to respond proactively to the new challenges of the business world. By leasing commercial vehicles, instead of buying them, you can ensure that your company has the highest level of flexibility possible.
Purchasing your fleet could be considered a static decision in that your company makes a significant single payment resulting in a range of vehicles that may become obsolete due to technological changes or an adaptation of your business model.
Commercial van leasing, on the other hand, offers you flexibility in that you can adapt and change your fleet to ensure that it’s optimised with the most up-to-date technology and adequately suited to your business requirements.
It also makes financial and investment planning much more straightforward, especially in the long run. For example, rationalising and quantifying all fleet outgoings in one simple monthly payment can reduce the likelihood of cash-flow spikes, enabling easier budgeting and simplifying your firm’s accounting.
Downtime can have a costly and disruptive impact on many companies, specifically those operating within the distribution business. It can result from malfunctioning equipment, staff shortages or a poorly optimised fleet.
As we mentioned above, purchasing your fleet can make it challenging to ensure that it remains optimal and fit for purpose in the long run. However, we can provide access to a range of vehicles and services to ensure that your fleet and staff are managed to maximise their output without risking driver burnout or excessive vehicle wear and tear.
Purchasing your fleet retains capital risk within your business. If a vehicle breaks down or fails to meet requirements, the responsibility lies with you to rectify this issue.
By leasing, you can minimise risk. Here at SG Fleer, we carry all vehicle residual risk, and at the end of your commercial van lease period, there is no obligation to purchase the vehicle. Instead, you can choose to update your lease or simply close it if you decide it’s no longer the direction you wish to take
Our dedicated commercial vehicle team is focused on delivering truck, plant and materials handling expertise. This team can give technical support to commercial vehicle fleet managers throughout the vehicle’s life cycle.
If you’re interested in a quote regarding our fleet solutions, head to our commercial vehicles and equipment page for more information. Alternatively, contact us to discuss the best options for your business.
- How the Budget 2022 Affects Fleet Business
- Five Technologies That Can Make Your Fleet Safe
- The Importance of Incident Reporting for Fleets
- SG Rental and Litelease: Which is Right for You?
- Vehicle Availability: What You Need to Know
