The economic downturn has left many firms counting costs and reviewing budgets to survive, and even thrive, in 2011.
For many hard pressed businesses, the cost of running company cars and vehicles is a growing concern. To lease, or to buy, is now a vital question being asked by company directors and business managers all over the UK looking to control rising costs in these difficult financial times. More than ever value-for-money is a huge priority in 2011.
Now Fleet Evolution, a Midlands based leasing company, says a move to leasing vehicles rather than buying is becoming a better option for firms looking to tighten their belts.
With companies being hit hard in the pocket by the VAT increase and changes in capital allowance rules among other things, many are now deciding that the outright purchase of a fleet of vehicles is no longer a viable option.
A Fleet News poll has revealed that 54% of firms have changed, or are considering changing, their funding method. Leasing could be the key to cutting costs.
One respondent in the poll revealed what motivated them to consider leasing rather than buying:
“Funding costs are increasing, but not inline with interest rates.” He said.
“Companies that can afford new vehicles are paying a premium to cover the losses that the banks have made. Changes to VAT and a shortage of funds is pushing us towards contract hire rather than outright purchase.”
Now Fleet Evolution have devised a simple calculation to help businesses run their fleet based on 3 factors to find the most cost effective way to procure vehicles.
The recommendation depends on an individual organisation’s own unique set of circumstances, such as vehicle type, mileages driven and tax profile. This means a personal review is essential
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