While GE is turning away business from SME fleets, there is a growing trend among smaller businesses away from outright purchase of vehicles and towards leasing.
While they may find it harder to find a supplier willing to take them on, SMEs appear to be appreciating that leasing could be more suited to their needs.
My Lease recently agreed to supply sushi restaurant, Me Love Sushi, with six liveried Smart cars – a typical SME deal that is no longer attractive to GE.
Mark Glassman, director of Me Love Sushi, which is typical of many SMEs that need vehicles to survive, explained why he has moved away from outright purchase: “Leasing was a better commercial decision for us and meant that we weren’t tying up capital in depreciating car assets.
"It also offered a hassle-free option because when the two-year lease is up we’ll give the cars back to My Lease and get a brand new car.”
Mike Bell, director at My Lease, confirmed that there has been a sharp increase in the number of companies choosing leasing over outright purchase.
“With the uncertainty in the economy, record depreciation rates for second-hand cars, and the need for companies to free up additional funding lines, leasing makes sound economical sense,” he said.
“Paying a fixed fee each month for company cars also helps with budgeting which is especially important for small to medium-sized companies.”