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Fleets urged to ‘future proof’ costs by leasing vehicles

Fleets urged to ‘future proof’ costs by leasing vehicles

Leasing vehicles, rather than buying them is a great way of “future proofing” costs for businesses, according to Simon Hill, director of Total Motion Vehicle Management.

Amid claims of Brexit uncertainty and the potential for vehicle operating costs to increase, Mr Hill says vehicle leasing is a “convenient and money-saving alternative to vehicle ownership” for businesses and private motorists.  

He said: “There is a lot of uncertainty in the market at the moment with no-one knowing exactly what impact Brexit will have on UK car sales. We don’t yet know how leaving the European Union will affect the euro and what that will mean for UK car imports.  

“By leasing their vehicles, businesses and private motorists can lock themselves into a fixed deal, so they can be confident that their motoring costs won’t increase, whatever happens post-Brexit. Effectively it is ‘future-proofing’, a bit like taking out a fixed rate mortgage.  

“For businesses which are VAT registered, leasing offers a big tax incentive too, as they can claim back 100% VAT on their car maintenance costs. Businesses are better able to plan their budgets, and their fleet is serviced as part of their leasing contract.”  

As well as Brexit, higher prices at the fuel pumps and spiraling car insurance costs, there were other emerging factors which could also hit fleets, according to Mr Hill.  

With the advent of the connected car, motor manufacturers, he said, wanted control over all data generated by those vehicles, but fleet operators, independent garages and insurance companies had all criticised the move as anti-competitive.  

Mr Hill said: “This issue is currently being debated in the European Union but should manufacturers get their way, it could mean higher servicing costs for motorists.  

“It’s yet another reason why businesses and private motorists would be better off leasing and leaving maintenance contracts to their lease provider as we have the network and buying power to support them.”