Join the Leasing Revolution
Recent in-depth research carried out by our long-term partners at Lex Autolease has revealed that SMEs in the UK want to cut costs and bolster business, yet have almost £6.7 billion tied up on their balance sheets in depreciating light commercial vehicle assets – capital that could have otherwise funded their growth opportunities.
There are currently more than 1.5 million light commercial vehicles (LCVs) registered to British businesses, of which SMEs own the majority of. These LCV’s are financed by cash reserves or bank debt. With the average replacement cycle of an LCV lasting four years, it is an accumulative cost burden that can fast become significant to any business.
Of the research carried out, it was found that more than three quarters of SMEs (77 per cent) surveyed had never leased a vehicle. For most, it is simply a case of preferring to own their assets – paying a premium to satisfy an emotional attachment to the tradition of ownership.
Interestingly, more than a quarter (28 per cent) believe leasing to be too expensive for their business, with almost the same proportion of respondents preferring to manage a single lump sum outlay than impact monthly cashflow with regular payments.
Leasing typically provides a more cost effective, manageable solution for sustained growth over the long term.
51% of SMEs that do lease vehicles say they do so to avoid the high upfront cost of buying, with less hassle being another major deciding factor.
Owning vehicles means dedicating the time, energy and manpower to manage them – resources that could be better spent on developing products and services to boost revenue, generate new business, and grow market share.
Leasing is an attractive choice for SMEs who want to be free to focus on their core business rather than everyday administrative and operational activities.
To join the Leasing Revolution, or discuss how your business could benefit, please contact us for an informal discussion.
How Would SME's invest the capital saved by Leasing?
Of the companies surveyed by Lex Autolease, the companies responses were:
43% supporting working capital
18% reduce overdraft/debt
15% new IT infrastructure
13% new plant/machinery
9% new/expand premises
8% research & development
Long Term Value
Flexible packages, competitive payment plans, and vehicle choice are just part of the business case for leasing.
Add maintenance and servicing, account management, financial and administrative support, and green solutions to the mix and the true long-term value of leasing becomes clear.
To join the Leasing Revolution or discuss how your business could benefit, please contact us for an informal chat.
Want to discuss this?
Call us today free on 0800 694 3880
Call us today free on 0800 694 3880
Costs of Leasing
The majority of prices shown throughout the Lease a Van section of our website are correct. However, in rare occasions, due to the complex variations of vehicles available in the commercial vehicle market, where chassis cabs can be fitted with dropsides, tippers, lifts, cranes, fridges, or bespoke items. Vans can also have different types of racking and tooling fitted – all variations and racked and tooled vehicles are subject to Vehicle Type Approval (VTA). Meaning that the price you see may be subject to change. However simply contact us for a quotation, which will be all encompassing.
These costs can be absorbed more easily in a lease type agreement this again helping with cash flow.
You don’t have the worries of what effects these conversions have on the resale of the vehicle at the end of its life.
Questions & Answers
How long are car leasing contracts?
At Prospectus Vehicle Solutions we can tailor a leasing contract to meet your needs, and contracts can last between 2 and 5 years. It’s often cheaper to take out a longer contract, but not always. It all depends on the vehicle and type of contract. We will look at the optimum term that’s the most cost-effective for you.
What terms are available for vehicle leases?
Our contracts are two, three, four or five-year leases, you can also opt for any monthly term between these ranges.
What Types of Leasing Contract Do you Offer?
We have a variety of user-friendly options. Taking into account your business or personal requirements and your circumstances, we find the scheme that’s right for you from a wide choice of finance facilities – and we will be happy to arrange it all for you.
Who funds our vehicles?
We have long-term working relationships with many of the UK’s most trusted car leasing companies, including Lex Autolease and Arval; two of the top UK companies in contract hire and fleet funding.