Fleet News

Fleet funding Features - Page 5

 
  • Finance lease is a method of financing a vehicle over a set period and the lessor - the finance company - retains ownership of the vehicle.

  • Salary sacrifice schemes allow employees to give up a portion of their income before tax in return for a company car. These cars can be funded by the company through a number of methods, but contract hire is the most common.

  • A move to make business funding a key issue to be tackled by the new coalition government has been welcomed by leasing, rental and contract hire companies.

  • Many companies have taken the decision to offer staff cash in lieu of a company car. However, this does not absolve the company of its health and safety and duty of car responsibilities.

  • If you’re looking to cut back on your fleet car costs your best option could be a mixed fleet approach.

  • There are a myriad of funding options for fleets to consider, but whichever direction a business takes to fund its fleet it should be reviewed on an annual basis.

  • Outright purchase - or buying vehicles - remains a popular choice amongst smaller companies, but there are associated risks.

  • For a flexible option, daily hire or rental arrangements can be appropriate, especially where vehicles are only required on a short term or irregular basis.

  • Hire purchase is a simple method of buying a vehicle on deferred payment terms, where you have the option to become the owner of the vehicle at the end of the agreement.

  • Contract purchase for a business aims to replicate the contract hire product, but uses a purchase based product.