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Choosing The Perfect Car Lease For Your Organisations Fleet

Author: Select Contracts     Date: 14-10-2014

Finding the right car for your company’s fleet can be a tricky but important decision. Do they have the vehicle you want available? Will it be the right choice? These are questions which have been asked ever since the concept of business car leasing was developed during the 1970’s. Back then the options were often limited, but now the British leasing industry is one of the biggest in the world and the choice of cars is massive. So how do finance directors select the one which ticks all the boxes?

How Does A Finance Director Find The Right Business Car Leasing?

Knowing what the business wants to achieve both as a company, and from their leasing scheme are the first two major considerations which need to be made. The industry in which the company operates may have an influence on which vehicle is needed, as might the budget or ambitions of the business.

Usually a shortlist is generated before a final decision is made, with a whole host of complex ingredients making up the decision on which cars make the final cut. In today’s climate finance often has the biggest role in dictating these decisions, but often business needs can outweigh the cost.

Practicality for the job has to take precedence, as a small hatchback for a long-distance travelling salesman might not make sense, just as a tradesman who uses many tools would need an estate vehicle or a van to transport their equipment. Other considerations such as image or branding can also play a factor in choosing the right business car leasing deal.

“There is a range of factors that must be considered when selecting a vehicle but the most important is that it does the job it is intended for. Irrespective of how cost-effective, environmentally friendly or desirable it is, it will never be the right choice if it can’t meet its purpose,” says Paul Marchment, fleet consultant at vehicle funding and fleet management company Arval.

The needs of company car leasing are often split into two, the issues of the business and the issues of the employee. These must be treated differently and may sometimes conflict; although natural the business should always win. The employee side includes the ‘perk’ of having the car for joining the company and having it for personal use.

But this doesn’t help with the decision as there are many key factors which finance directors must take into account when making fleet funding decisions. These include the company’s corporation tax and VAT position, the availability of cash within the organisation, the rate of return on capital employed, corporate balance sheet implications, the level of internal fleet expertise, and the culture of the business and its attitude to financial risk and outsourcing.

All of these variables can have an influence, with some much more critical than others. Marchment says, “too many companies focus purely on the up-front lease rental or purchase price. However, this, in isolation, is not the most effective metric, as we see many examples where what looks like a cheap vehicle based on these initial costs actually isn’t when you factor in the full range of costs over the three- or four-year operating cycle.”

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Personal And Business Car Leasing From Select Contracts

At Select Contracts we provide complete personal and business car leasing for every make or model including all of the latest electric cars. All our vehicles come with free UK delivery from our national network of dealers and vehicle preparation centres.

For more information on our car contract hire services, please get in contact by emailing or call 0845 6770 770.

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Select Car Leasing is a trading style of Select Contracts (UK) Limited and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker not a lender. VAT Registration No 181 8746 74. ICO Registration ZA076253. Company Number 065690988. Select Car Leasing are proud to be a member of the British Vehicle Rental and Leasing Association (BVRLA) No 1846.


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Select Car Leasing is a trading style of Select Contracts (UK) Limited and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker and not a lender. VAT Registration No 181 874674. ICO Registration ZA076253. Company Number 06569098. Select Car Leasing are proud to be a member of the British Vehicle Rental and Leasing Association (BVRLA), No 1846. Registered address: Atlantic House, Imperial Way, Reading, Berkshire, RG2 0TD

© Copyright 2018 Select Contracts UK Limited. All Rights Reserved.