Deciding how to finance your fleet is a crucial decision with long-term implications. The right choice can provide you with considerable cost savings and operational efficiencies, while the wrong one could lead to unexpected expenses and complications.
One option is Finance Lease. It offers a balance of control and flexibility, potentially making it an attractive choice for your fleet. In this blog, we’ll explore what Finance Lease is, how it works, its pros and cons, and how Alphabet can guide you in making the best choice for your fleet.
What is Finance Lease?
Pros of Finance Lease
Opting for Finance Lease comes with benefits, but it also carries some considerations you should be aware of before making a decision.
Balance Sheet Advantage
As the leased vehicle sits on your balance sheet, it can provide some financial and tax advantages.
Flexible Costs
You have the freedom to adjust your ‘balloon’ (lump sum) payment and choose fixed monthly payments that suit your budget.
Greater Buying Power
Our team of experts can help your money go further with access to a huge range of high-quality, multi-make vehicle options.
Profit from Resale
If you choose to sell the vehicle after the lease agreement ends, any profit above the contracted value is yours to keep.
Cons of Finance Lease
Maintenance Responsibilities
Unlike other lease options, the lessee is responsible for vehicle maintenance, insurance, and other associated costs. This requires careful management to prevent unexpected expenses.
Balloon Payment
At the end of the agreement, a large balloon payment is often required if you wish to retain the vehicle.
Potential Depreciation
Be aware that a vehicle could, in some instances, sell for less than its contracted value. If this happens, you’ll be responsible for repaying any deficit at the end of the agreement.
Implementing Finance Lease for your fleet
When it comes to choosing the right fleet funding for your business, Alphabet is ready to help. We offer a range of fleet funding options, including Finance Lease, to ensure your choice aligns perfectly with your business needs.
Our team of experts is committed to helping you navigate Finance Lease agreements. We offer advice tailored to your situation, covering everything from adjusting balloon payments to maximising your fleet's value. Plus, with our extensive industry network, we can help you secure premium vehicles for your fleet.
Ready to explore if Finance Lease is the right fit for your fleet?
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