Lease or Purchase? How Should You Fund Your Fleet…

If your business is ready to take on or expand an existing fleet of vehicles, it’s essential that you make the right decision on how to acquire those vehicles.

Making the wrong decision at this stage could come at a huge cost for the business, but the right decision could save you thousands.

Owners and fleet managers need to make sure they have up-to-date advice and information to hand to make sure it is the right move for the business.

No one path is right for every business, and there are many advantages and disadvantages of the different methods of acquiring vehicles, whether that be hire purchase or leasing.

If you’re facing this dilemma, here are a few pointers that might help.

Hire purchase

Purchasing a fleet vehicle may seem expensive to start with, but it can bring some financial benefits and savings in the long term.

The vehicles purchased are considered an asset of the business and at the end of the agreement, you are free to dispose of it as you see fit, bringing funds back into the business.

You may also be able to obtain tax relief of up to 100 per cent of the vehicle depending on the Co2 emissions of the car and when it was purchased. You can check your vehicle’s eligibility on

With electric vehicles, businesses can claim 100 per cent of the cost against the profits of the year of purchase.

While there are significant financial benefits of this method of acquiring vehicles, the downside is that you are responsible for the maintenance and repair of vehicles. You may also need to take on a fleet manager to look after the vehicles – all extra cost for the company.


Leasing is initially cheaper than hire purchase, with no capital outlay. And entering into a lease agreement often means that maintenance and repair of the vehicles is all taken care of.

Leasing can often be flexible – at the end of the contact you can choose to continue with updated vehicles, or hand them back.

There is undoubtedly a lot less stress with this option.

However, you don’t end up owning the vehicle, there is no asset to dispose of at the end of the agreement which may bring money into the business.

There may be also be restrictions as part of the lease agreement, including sticking to a specified mileage and ensuring the vehicle is kept in a good, clean condition.

If the rules are not adhered to, extra fees could follow, bringing more expense.


It’s essential for fleet managers to have all the latest information at hand. At Find & Finance, we make sure we’re up to date with any changes in legislation and we can offer fair, honest and impartial advice to make sure the decision is right for your business.

To find out more, email us at or give us a call on 0333 006 3825.

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