It is common to be asked, “What is a fleet car and should I buy one for my business?” Let’s first look at fleet vehicles.
Definition of a Fleet Vehicle
How do you define a fleet car? A fleet vehicle is any motor vehicle that a business owns or leases. Different types of organisations can use fleet vehicles to transport goods or provide vehicles for staff. Fleet vehicles may also be used by taxi drivers and vehicle rental companies. A fleet manager may take care of it depending on the size of the company’s fleet.
Do I need a fleet vehicle?
It is worth looking at fleet leasing and fleet purchase before deciding whether you should purchase a fleet vehicle. Many businesses prefer to purchase the vehicle outright, with a higher initial outlay but lower monthly fees. This would be a significant capital outlay, and vehicles can depreciate very quickly. It may be more appealing to purchase if your company is older and has a large lump sum.
Fleet leasing allows you to select the vehicles that you need and then pay a monthly bill. You have less to worry about and to monitor as the vehicle maintenance is usually included in this type of arrangement.
There are many reasons to get a fleet vehicle
There are many reasons to get a fleet vehicle, depending on the type of business you run. You might need to deliver goods, transport clients frequently, or manage company vehicles. A high-spec luxury vehicle with high-quality amenities can be attractive to employees. It is easy to lease a fleet of vehicles or vans. Leasing a fleet of cars or vans is easy. If you lease or buy more than 10 vehicles, it is considered a commercial fleet. This allows the manufacturer to offer incentives. Talk to your vehicle provider if this is your first fleet purchase. They can tell you what kind of service they offer.
There are many reasons to get a fleet vehicle
It is important to calculate the cost of a fleet vehicle for your company. This includes fuel, insurance, and maintenance costs. It will be worthwhile to appoint a fleet manager to track the vehicle requirements.
Pros
- You can drive as much as you like without restrictions. Unlimited mileage Note: High mileage vehicles can be sold at a lower price.
- Buy a used car – Spend less but get a quality used car after examining the condition.
- You have a greater choice of make/model – buying tends to give you better access to a larger range of vehicles with different types.
Cons
- Compliance and maintenance – maintaining the vehicle in a safe and roadworthy condition. This is part of your company’s responsibility to service it. The company might need to hire a fleet manager to help with these tasks. However, if you opt to use a Fleet Management Service, all this would be included.
- The residual value of your vehicle may be lower. You can’t predict what price you’ll get when you sell it. Vehicles can become more costly to maintain as they age.
- You need to keep up with the demand. There may be more or fewer vehicles needed at different times. Leasing allows you to be more flexible than purchasing vehicles.
There is no simple answer to the question “Should I get fleet vehicles for my business?” It all depends on how big your business is, what type it is, and how long you’ve been in business. Before making a decision, it is important to weigh the pros and cons and consider how your business will be affected in the short- and long-term.
