Fleet Vehicle Funding & Business Car Leasing

Whether you're a seasoned fleet manager or someone with the responsibility of managing a fleet, the variety of options available can seem overwhelming. Our team of experts understand the intricacies of business car leasing and can help you determine which leasing solution suits your company's needs and objectives. We recognise that every business is unique and will work with you to offer leasing options which cater specifically to your company's requirements, ensuring the most cost-effective and efficient solution for your fleet.

It's essential to understand the various vehicle funding options available for your business.

Business vehicle leasing offers flexibility and efficiency. It's a convenient, cost-effective, risk-averse alternative to purchasing company cars and vans outright.

While purchasing your vehicles outright can give you complete control over your fleet, it requires high intial captial expenditure. You're also incur any depreciation in the value of the vehicles while you own them. Our team can walk you through the different business leasing options available, their respective benefits, and things you need to consider in order to help you decide which options are the right fit for your company's needs and budget.

To qualify for business car or van leasing, you must be either a sole trader, partnership, VAT registered company, limited company, or private limited company (PLC).

We will ask you to provide company details and documentation for verification. This typically includes proof of identity for the business owner and directors, company address, registration number, bank statements, and annual net income.

A credit check will also need to be passed before the finance can be approved and vehicles ordered.

The key difference between these two funding methods is that Sale and Leaseback gives you the opportunity to sell your current company vehicles to us, and lease them back. This releases funds back into your business and means those vehicles are no longer sitting on your balance sheet.

Beyond this, both funding methods have similar benefits. You mitigate risk as you no longer own the vehicles outright, and you benefit from predictable, fixed monthly payments.

The key difference between these two methods is that with Finance Lease, the leased vehicle sits on your company's balance sheet.

Pros of Finance Lease

• As the leased vehicle sits on your balance sheet, it can provide some financial and tax advantages.
• Once the lease agreement ends, you are responsible for selling the vehicle to a recognised third party and any profit above the contracted value is yours to keep.

Pros of Contract Hire

• You can plan ahead with confidence due to fixed monthly payments.
• At the end of the contract you simply return the vehicle to us and we bear the risk of the vehicles depreciation value.

The key difference between these two funding methods is that with Contract Purchase, you can choose to buy the vehicle at the end of your agreement by paying a predetermined 'Option to Purchase Fee' as well as a final Balloon Payment. Whereas with Contract Hire, you simply give the vehicle back when your agreement comes to an end.

Both these options have similar benefits: you mitigate risk as we own the vehicle outright for the duration of your agreement, and you can budget easily with predictable and fixed monthly payments.

The key difference between these two funding methods is that you have the option to buy the vehicle outright at the end of a Contract Purchase agreement.

Pros of Finance Lease

• As the leased vehicle sits on your balance sheet, it can provide some financial and tax advantages.
• Once the lease agreement ends, you are responsible for selling the vehicle to a recognised third party and any profit above the contracted value is yours to keep.

Pros of Contract Purchase

• You can plan ahead with confidence as the costs of ownership, like unexpected maintenance, rests with us.
• You have the option to purchase the vehicle when your agreed lease ends.

The key difference between these two methods is that Sale and Leaseback give you the opportunity to sell your current company vehicles to us, and lease them back. You receive an injection of cash back into your business from the sale of your vehicle.

Pros of Sale and Leaseback

• You benefit from an immediate release of cash by selling your vehicle to us.
• As the new owner, we assume all the financial risks associated with vehicle ownership, such as unpredictable resale values and unexpected repair costs.

Pros of Finance Lease

• As the leased vehicle sits on your balance sheet, it can provide some financial and tax advantages.
• Once the lease agreement ends, you are responsible for selling the vehicle to a recognised third party and any profit above the contracted value is yours to keep.

The key difference between these two methods is that with Sale and Leaseback, you receive an initial injection of cash from the sale of your vehicle before starting your lease. For Contract Purchase, you have the option to purchase the vehicle you have been leasing at the end of your agreement. Whereas, with Sales and Leaseback, you simply give the vehicle back when your agreement comes to an end.

Beyond this, both options have similar benefits. You mitigate risk as Alphabet owns the vehicle throughout your agreed term, and you benefit from predictable and fixed monthly payments.