Fully maintained operating lease
What is an operating lease?
An operating lease works like a rental agreement in that you only pay for use of the vehicle. The lessor takes the risk on the purchase and resale of the vehicle, and it frees up your business capital that may otherwise be tied up with asset ownership. Tax benefits may be available where the cars are used to generate taxable income.
Your business simply returns the vehicle at the end of the lease with no resale value risks. Budgeting is easier as you agree a fixed price for the term of the lease, with all essential operating costs included.
Operating leases allow businesses to free up their balance sheet. Under an operating lease, the company makes a monthly payment for the duration of the term, which covers the rental costs for the vehicle, servicing, maintenance, registration and other services. At the end of the term, the vehicle is returned, with the company having no exposure to its market value. Financing vehicles under an operating lease also delivers operational benefits.
It facilitates the outsourcing of the management and running of the fleet to a specialist fleet management organisation such as SG Fleet. Operating leases are the most popular method of financing a fleet of motor vehicles.
