When there’s uncertainty throughout the supply chain, most businesses will adjust their annual ordering and budget plan. While such disruptions can certainly present a number of challenges, many proactive organizations view this kind of unfortunate situation as an opportunity to reevaluate their acquisition strategy.
Often the conversation begins with one or more complex questions: How Does a Fleet Lease Work? or What Is a Fleet Purchase?
To begin to answer these long-standing questions, here are a few important considerations as well as some initial conversation starters to help guide your decision-making process.
Lease or Buy Fleet Vehicles?
For many organizations, there’s always been a perceived fear of leasing – a concern that you could end up paying more in terms of total cost of ownership (TCO) as compared to owning a vehicle outright. Fortunately, advanced analytics can help change that perception by transforming your fleet data into actionable insights that highlight the true TCO for each acquisition scenario.
Today, leasing, purchasing, and financing are all viable options when it comes to acquiring vehicles for your fleet.
For some companies, purchasing or financing vehicles may be the best way to invest capital directly back into your business, but this can also restrict cash flow. For others, leasing may be a more attractive option, as lower payments allow you to maintain liquidity and retain capital for other investment opportunities. And in many scenarios, a hybrid solution comprised of both purchasing and leasing vehicles may provide significant benefits for your organization.
As you decide whether to lease, finance, or purchase your vehicles, don’t be fooled by myths. Trust the facts (i.e., data), and treat your fleet just as you would any other strategic business asset by determining which option(s) delivers the most value for your organization.
What’s best for your business?
Remember, there’s no one-size-fits-all approach for vehicle acquisitions. Your business is unique, which makes every acquisition-related decision just as distinctive. Leasing, financing, or purchasing vehicles impacts your company’s fiscal future in different ways. You’ll need to carefully weigh the pros and cons of each when you develop your acquisition strategy.
As you work to determine what’s best for your organization, answer these key questions to help guide your decision-making process: