Fleet News

Lease Plan computer model helps fleets solve acquisition problems

LEASE Plan has unveiled a new computer model aimed at helping small businesses save thousands of pounds by leasing their company car fleets instead of acquiring vehicles outright.

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:

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