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.
A finance lease is similar to an operating lease, however the customer has exposure to the market value of the vehicle and is therefore not protected from movements in the used vehicle market.
The operational benefits of outsourcing the management and running of the fleet to a specialist provider are maintained under a finance lease.
SG Fleet will provide fleet management services where a customer elects to own or finance its vehicles through other methods. The services provided will be the same as those provided to a customer that utilises operating or finance leases. The full range of value-added products and services can be included whichever funding method is used.