Financing and leasing your vehicle fleet
Learn what lease option will offer you the best value
You need to think well beyond the initial purchase or lease price to get genuine value from your vehicle fleet.
Consider what vehicle financing option will deliver the best return on investment for your fleet over the longer term.
Types of vehicle lease
The main two types of vehicle lease are operating lease and finance lease. There can be benefits with both, and one may work better than the other for you. The right choice will depend on a variety of factors.
Operating lease
An operating lease works like a rental agreement - you only pay for use of the vehicle, and it can free up capital that may otherwise be tied up with ownership of a depreciating asset.
Finance lease
Under a finance lease, vehicles are purchased by the lessor on behalf of the lessee, or business. The benefits of this type of lease might include minimal deposit terms, indeed, some of these leases do not require any deposit.
Lifecycle costs
Lifecycle cost – also known as whole-of-life cost or total cost of ownership - refers to the total cost of owning an asset over its entire life.
This total cost includes all vehicle related expenditure associated from purchase to sale. Factors such as purchase price, lease payments, depreciation, residual value, anticipated maintenance, fuel are all part of the equation.
