Leasing or Buying: Which Is More Advantageous for Your Company Fleet?
1 min to readTrends
For many small and medium-sized enterprises (SMEs), the question “Which is more advantageous – to lease or to buy the company fleet?” often remains unanswered. Why? Either they act out of habit, or they believe their current solution is the best. But this choice is crucial, as it has significant financial and operational consequences for any business. For a business, making decisions by inertia can be very costly. Comparisons and calculations must be made before taking action. The comparison is complex and affects not only cash flow, the income statement, and the company’s balance sheet, but also operational efficiency in fleet management.
To help you make an informed decision, we will review the advantages and disadvantages, paying attention to often overlooked factors.
To fairly compare leasing and buying, you need to analyze the Total Cost of Ownership (TCO)* for each option.
The vehicle’s life cycle includes:
• Selecting the most suitable vehicle at the right price.
• Method of financing (purchase, loan, or lease).
• Operation and ongoing costs (insurance, fuel, maintenance, repairs).
• Sale of the vehicle and depreciation.
At Ayvens, our approach is built on global know-how and specialized expertise. Unlike others, we don’t just offer financing – we take full care of your fleet, because this is our core business.
Our commitment to you:
• Global experience and local solutions: Our operational expertise, backed by Ayvens’ global know-how, allows us to offer solutions that combine the best global practices with an understanding of the local market.
• Multi-brand approach: We are not limited to specific brands. This gives you complete freedom of choice and access to the most suitable models that meet your business’s specific needs.
• Cost optimization: Thanks to our scale, we negotiate preferential terms for maintenance, insurance, and all fleet-related services. This provides you with significant savings and more efficient budget management.
• Consulting services and innovation: We are more than a leasing company. We offer expert advice on key topics such as fuel cost optimization, transition to electrification, and the implementation of innovative technologies like telematics.
Financing
When you buy vehicles, you invest your own capital, which could otherwise be used to develop your core business. These funds, “locked” in vehicles, have their own cost – whether it’s loan interest or the opportunity cost of a better return on that money. In addition, the standard warranty often proves insufficient, requiring the purchase of expensive extended warranties for your peace of mind.
With operational leasing, you get the vehicles you need without spending valuable working capital or burdening your credit lines. You pay a fixed monthly fee that covers depreciation, interest, insurance, and maintenance. This significantly improves the forecasting and planning of your cash flow. Even the costs of serious mechanical issues are included in the monthly payment. Thus, the leasing company assumes this risk, protecting you from unexpected and costly surprises.
Operation
After financing comes ongoing costs and management.
When you buy, you manage all operational aspects of the vehicle yourself – from insurance, fuel, and maintenance, to tire changes, repairs, roadside assistance in case of incidents, and even paying fines. This requires significant time and human resources from your team, who must seek suppliers, negotiate prices, and process endless invoices. Often, this aspect of the Total Cost of Ownership (TCO) is greatly underestimated.
With leasing, the leasing company takes care of all operational services. This allows you to focus entirely on your core business. Maintenance – both preventive and when repairs are needed – tire changes, and roadside assistance are included in the leasing contract. You also receive a fuel card with potential discounts and detailed consumption reports. Insurance, claims handling, and incident management (including providing a replacement vehicle) are also fixed cost components, minimizing vehicle downtime and significantly increasing efficiency for you.
Sale
At the end of the life cycle, when the vehicle needs to be sold or scrapped, owners face significant risk. There is a danger that the vehicle will be sold at a lower than expected value, leading to financial losses.
With a leasing contract, the leasing company forecasts the residual value at the outset and calculates your monthly payments based on this forecast. This frees you from concerns and the risk of a lower resale value at the end of the lease period. The leasing company assumes this risk instead of you.
The decision whether to lease or buy is much more complex than simply comparing monthly payments or the costs of interest and depreciation. Every stage of the vehicle’s life cycle affects its total cost.
To have a complete and clear picture, consider not only the financial aspects but also the added value of the maintenance and services that the leasing company offers. These services can significantly ease the work of your fleet managers and administrative staff, ultimately saving your company time and money.
Do you have questions about fleet management or how operational leasing can optimize your business? Contact us today to discuss how Ayvens can help you make the best decision for your needs!
*TCO (Total Cost of Ownership), or Total Cost of Ownership, is a financial indicator that encompasses all direct and indirect costs associated with an asset throughout its entire life cycle, giving you a complete picture of the real costs beyond the initial purchase price. Analyzing it is key to making informed decisions, as it reveals hidden costs for operation, maintenance, depreciation, and realization on the secondary market, which are often more significant.
For many small and medium-sized enterprises (SMEs), the question “Which is more advantageous – to lease or to buy the company fleet?” often remains unanswered. Why? Either they act out of habit, or they believe their current solution is the best. But this choice is crucial, as it has significant financial and operational consequences for any business. For a business, making decisions by inertia can be very costly. Comparisons and calculations must be made before taking action. The comparison is complex and affects not only cash flow, the income statement, and the company’s balance sheet, but also operational efficiency in fleet management.
To help you make an informed decision, we will review the advantages and disadvantages, paying attention to often overlooked factors.
To fairly compare leasing and buying, you need to analyze the Total Cost of Ownership (TCO)* for each option.
The vehicle’s life cycle includes:
• Selecting the most suitable vehicle at the right price.
• Method of financing (purchase, loan, or lease).
• Operation and ongoing costs (insurance, fuel, maintenance, repairs).
• Sale of the vehicle and depreciation.
At Ayvens, our approach is built on global know-how and specialized expertise. Unlike others, we don’t just offer financing – we take full care of your fleet, because this is our core business.
Our commitment to you:
• Global experience and local solutions: Our operational expertise, backed by Ayvens’ global know-how, allows us to offer solutions that combine the best global practices with an understanding of the local market.
• Multi-brand approach: We are not limited to specific brands. This gives you complete freedom of choice and access to the most suitable models that meet your business’s specific needs.
• Cost optimization: Thanks to our scale, we negotiate preferential terms for maintenance, insurance, and all fleet-related services. This provides you with significant savings and more efficient budget management.
• Consulting services and innovation: We are more than a leasing company. We offer expert advice on key topics such as fuel cost optimization, transition to electrification, and the implementation of innovative technologies like telematics.
Financing
When you buy vehicles, you invest your own capital, which could otherwise be used to develop your core business. These funds, “locked” in vehicles, have their own cost – whether it’s loan interest or the opportunity cost of a better return on that money. In addition, the standard warranty often proves insufficient, requiring the purchase of expensive extended warranties for your peace of mind.
With operational leasing, you get the vehicles you need without spending valuable working capital or burdening your credit lines. You pay a fixed monthly fee that covers depreciation, interest, insurance, and maintenance. This significantly improves the forecasting and planning of your cash flow. Even the costs of serious mechanical issues are included in the monthly payment. Thus, the leasing company assumes this risk, protecting you from unexpected and costly surprises.
Operation
After financing comes ongoing costs and management.
When you buy, you manage all operational aspects of the vehicle yourself – from insurance, fuel, and maintenance, to tire changes, repairs, roadside assistance in case of incidents, and even paying fines. This requires significant time and human resources from your team, who must seek suppliers, negotiate prices, and process endless invoices. Often, this aspect of the Total Cost of Ownership (TCO) is greatly underestimated.
With leasing, the leasing company takes care of all operational services. This allows you to focus entirely on your core business. Maintenance – both preventive and when repairs are needed – tire changes, and roadside assistance are included in the leasing contract. You also receive a fuel card with potential discounts and detailed consumption reports. Insurance, claims handling, and incident management (including providing a replacement vehicle) are also fixed cost components, minimizing vehicle downtime and significantly increasing efficiency for you.
Sale
At the end of the life cycle, when the vehicle needs to be sold or scrapped, owners face significant risk. There is a danger that the vehicle will be sold at a lower than expected value, leading to financial losses.
With a leasing contract, the leasing company forecasts the residual value at the outset and calculates your monthly payments based on this forecast. This frees you from concerns and the risk of a lower resale value at the end of the lease period. The leasing company assumes this risk instead of you.
The decision whether to lease or buy is much more complex than simply comparing monthly payments or the costs of interest and depreciation. Every stage of the vehicle’s life cycle affects its total cost.
To have a complete and clear picture, consider not only the financial aspects but also the added value of the maintenance and services that the leasing company offers. These services can significantly ease the work of your fleet managers and administrative staff, ultimately saving your company time and money.
Do you have questions about fleet management or how operational leasing can optimize your business? Contact us today to discuss how Ayvens can help you make the best decision for your needs!
*TCO (Total Cost of Ownership), or Total Cost of Ownership, is a financial indicator that encompasses all direct and indirect costs associated with an asset throughout its entire life cycle, giving you a complete picture of the real costs beyond the initial purchase price. Analyzing it is key to making informed decisions, as it reveals hidden costs for operation, maintenance, depreciation, and realization on the secondary market, which are often more significant.
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Published at January 1, 1
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January 1, 1
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