The UK’s small businesses
prefer to purchase their vehicle fleet rather than use the lease
option favoured by medium-to-large companies.
Research by the Corporate
Vehicle Observatory (CVO) shows 62% of small businesses with up to
100 employees purchase vehicles outright, with a further 10%
purchasing using car credit.
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Only 28% of similar-sized
companies, the survey found, are funding their vehicle fleet
through a finance or operating lease.
The annual Fleet
Barometer by CVO shows the use of leasing is much higher in
medium to large companies employing more than 100 people with 61
leasing their fleet.
Researchers conducted more
than 4,500 interviews with fleet decision makers between February
and March in 15 countries to produce the findings.
Figures for European
companies were broadly similar, with 63% of small businesses opting
for purchase with or without car credit.
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By GlobalDataThe CVO was set up and is
supported by leasing and fleet management company Arval and has
produced an independent annual report since 2002.
Arval director of market
insight Mike Waters said: “By purchasing their own vehicles, small
businesses are exposing themselves to greater levels of
risk.
“They are also missing out on
the support and up-to-date advice companies receive from a leasing
provider when they decide to lease vehicles.”
The same research also found, of the small companies who
do lease their fleet, budget control is the main benefit besides
cost for leasing.
