How to Save Money on Vehicle Leasing Rates
Leasing a fleet of vehicles can be very costly for a small business. Here's how to keep prices down
Leasing a fleet of vehicles is often one of the largest expenses a business has to bear. Whether it’s company cars for your sales team, or a contract hire agreement for work vans, the costs involved soon add up.
However, there are ways to save money on your leasing rates – especially in today’s busy and thriving marketplace.
Think carefully about which vehicles to offer staff
For many businesses the fleet of cars or vans is as much about status as it is about cost saving and practicality.
Of course you want to attract the best staff and display the best company image, but that doesn’t mean you need to offer a huge selection of top of the range cars.
Being more conservative about the types of vehicles you choose is a sure fire way of saving money on your leasing costs.
You can make substantial savings across the fleet by putting sensible limits in place.
A less diverse fleet also has lower administrative burdens and there are often better rates on offer from manufacturers if you only take vehicles from their range.
Compare the market to find the right deal
Shopping around is now the key to the vast majority of transactions that take place. Just as you would compare the market for your bank loans, insurances and commercial mortgages, the same should also be true for your vehicle leasing contract.
The market has exploded in recent years and there is now a variety of suppliers all competing for your business.
You can use this to your advantage to secure the right level of service at the right price. Even if you’ve been with the same supplier for years, the chances are the rates have crept up and the service has stagnated.
You could be getting a lot more for your money elsewhere – and CompareMyFleet.com exists to help you easily compare prices and service levels for a wide range of suppliers.
Be careful about tying yourself to one company
Businesses probably know they could be getting a better deal by changing suppliers, but many don’t because they think it’s too complicated.
This is especially true for those with larger fleets as the vehicle contracts often don’t all end on the same day. As a result rates can creep up and providers become complacent in their service levels.
So next time you have vehicles coming to the end of their contract, it’s worth getting a few other prices to see if your supplier is still competitive.
More companies are now using two to three suppliers at the same time and always seek new bids when contracts are up for renewal.
What may involve a small amount of extra work could result in savings of many thousands of pounds over a three-year term. As well as saving money, this also keeps suppliers on their toes.
Think about separating the maintenance element
Many businesses also pay leasing companies an additional fixed monthly fee to cover any service, maintenance and repair costs, tyres, breakdowns etc. This may not offer the best deal and often there is a lack of visibility on what is being spent. Peace of mind about a fixed monthly spend often comes at a premium cost
It can be more cost effective to separate this element out, especially where newer, more reliable vehicles are involved, and there are specialist fleet maintenance companies who can provide a great service at a lower cost.
Watch out for the small print
As with any goods or services you buy, it’s important to check the small print. Although savings are almost always available as a result of shopping around, the vehicle leasing industry is not the easiest marketplace to navigate.
It’s important to make sure that seemingly impressive headline rates are not hiding other additional costs or unexpected expenses, such as large upfront payments, excessive damage claims and unexpected end of lease costs.
Contracts can be wrapped up in complex terms and variations which can make it difficult to spot the potential pitfalls.
Specialist fleet comparison services such as CompareMyFleet.com have access to the UK’s top suppliers and can help navigate the industry to find the best deal- not just on day one but for the lifetime of the contract
By Neil Birkbeck and Mark Pritchard of CompareMyFleet.com. For more details or other ways to save money on fleets contact Neil on 07769 727 364.