Elliott Woodhead, director SME & partnerships at vehicle leasing group Arval, explains…
In our experience, most SMEs think fleet management isn’t for them. They’re too small for a dedicated fleet manager, so the company typically buys its cars or vans (anything up to around 50) outright and someone in admin, HR or finance looks after them. 
But the truth is that even if you only run a single car, your business might be vastly better off by assessing the value of leasing.
Arval is exhibiting at Business Showcase South West – the region’s largest event of its kind – on May 14-15 because we want to bust some of the myths about business vehicles. Myths like:
- ‘I don’t need to worry about it’. Vehicles are actually business-critical tools, especially in the South West. Government data shows that people in the region averaged 35 work trips each last year, more than anywhere else in the UK.
- ‘It’s cheaper to buy than lease’. A monthly leasing cost is often actually cheaper than if you bought those cars and vans yourself, plus there are tax benefits. And you don’t have to spend tens of thousands buying the vehicles upfront. That’s capital you can instead invest in your business.
- ‘We only run a few cars or vans. We can manage them ourselves’. You can, but why should you? A leasing company will handle the admin, manage all the maintenance and servicing, sort out repairs if you have an accident, arrange new tyres when you need them and take on all the risks. That’s a lot of paperwork gone away, plus you don’t have a depreciating asset on your balance sheet losing you money.
- ‘I don’t understand all the financing options’. Yes, leasing can seem complicated. However, a good leasing company will walk you through the process and help you decide which package works best for your business.
- ‘I’ve always bought my vehicles. It’s what I’m used to’. It’s understandable that entrepreneurs think like consumers, but that doesn’t mean it’s the right business solution. Leasing can be as effective for SMEs as for the largest multinationals.
- ‘I don’t have time to think about this’. We hear this a lot, but there are simple online systems for assessing a company’s needs that can be set up in minutes. Plus, it’s worth the time: you could be saving thousands (or even tens of thousands) of pounds.
Visit Arval at Business Showcase South West in the Colston Hall, Bristol, on May 14-15 or go to www.arval.co.uk to find out more about company vehicles and expose the myths for yourself.
