- Why vehicle leasing can improve a firm's balance sheet
- Aids capital preservation and reduces risk
- Predictable costs with motoring peace of mind
- Leasing EVs can help meet Environmental, Social, and Governance (ESG) targets
Leasing fleet vehicles can revolutionise the business balance sheet - and firms would be foolish to ignore the benefits.
That’s according to experts at Select Fleet Solutions, the corporate arm of leading UK broker Select Car Leasing.
Sarah Worthington, Head of Corporate at Select Fleet Solutions, says the leasing model can improve financial efficiency, aid risk mitigation, and lead the way when it comes to Environmental, Social and Governance (ESG) compliance.
How does vehicle leasing address those three core pillars of industry - and does it really make more sense than financing your fleet via other methods?
(Sarah Worthington, Head or Corporate at Select Fleet Solutions)
Capital preservation
Sarah explains: “With leasing, there’s no large up-front cost.
“Instead there’s a low initial payment followed by fixed monthly payments while the residual value risk of the depreciating asset sits with the funder rather than the lessee.
“Leasing can therefore help to preserve a business’ capital, freeing up funds to seize future opportunities or to weather unforeseen challenges.”
Neutralising residual value risk
Vehicles are far from immune to value volatility, particularly in an era where ever-evolving battery tech is having an impact on EVs.
Sarah adds: “Unless you’re looking to purchase the vehicle at the end of your lease agreement, or there’s a specific residual value guarantee, leasing provides no risk to the lessee when it comes to depreciation.
“As a company, you’re not exposed to fluctuating second-hand values and you’re not saddled with obsolete technology.
“When you lease, you simply hand back the keys at the end of your agreement without having to consider the hassle and cost of vehicle disposal.”
Predictable, long-term ROI
Predictable monthly costs, rather than irregular spikes, are what fleet managers demand.
And when you lease, you get the peace of mind and budgeting foresight that comes with regular, fixed monthly payments.
You automatically receive breakdown cover when you lease and VED is included. You can add an optional servicing & maintenance package to your lease agreement which covers you for all scheduled service appointments, repairs, as well as the replacement of worn parts like tyres, brake pads and discs.
With dedicated fleet management services also available, leasing allows you to reduce your administrative burden as well as internal overheads.
.jpg)
ESG considerations
Environmental, Social, and Governance (ESG) metrics matter and transportation is often the largest contributor to a company’s carbon footprint.
Leasing EVs as part of your fleet, and charging them via renewable sources, can lead to reductions in Scope 1 and Scope 2 emissions while smoothing your pathway to Net Zero.
Sarah adds: “Because of the Benefit in Kind (BiK) implications, EVs also make the most sense as part of company salary sacrifice schemes.
“Such schemes are free to implement and improve talent retention and staff satisfaction - all the while companies can reduce their employer National Insurance contributions - because when an employee sacrifices part of their gross salary for an EV lease, the employee’s taxable salary decreases.”
Get in touch with the Select Fleet Solutions team today and find out how your firm can reap the benefits of vehicle leasing. Book a free consultation.
Enjoyed this? Read our latest news
- Kia K4 Sportswagon is your new practical estate!
- Mitsubishi L200 set for UK comeback as 2026 launch confirmed
- Top 5 cars from the Brussels Motor Show 2026
- Top 10 best car lease deals this week!
- Could new Zeekr 7GT outmuscle Porsche and BMW?
Where To Next?
What is car leasing? Read our car leasing explainer.
For all the latest reviews, advice and new car deals, sign up to our newsletter.
Looking for a great leasing deal? Check out our incredible range of special offers.
Read our latest reviews and find the right model for you.
Want to know more about leasing? Take a look at our comprehensive leasing guides.
Interested in everything motoring? Why not catch up on all the latest car leasing news.
