The company says larger fleets have opted to lease vehicles for many years and as a result has launched a small business leasing product, Pinpoint, to encourage smaller fleets to do the same. Lease Plan says the decision-making process has been strengthened by lower leasing rates as a result of the August 1, 1995 VAT changes.
Lease Plan's computer model takes into account all the costs, allowances and tax issues associated with each vehicle - lease or purchase - and how capital is spent and recouped. Fleet details, such as size, cost of vehicle, replacement cycle are then added. Finally a discount rate is applied to reflect how much could be made by investing the savings in the business.
A case study of 12 vehicle fleet reveals that a small business would save £14,400 - an average of £1,200 a vehicle.
The study assumes: