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Should You Lease Your Vehicle Fleet?

As the owner of a small business, you really need to consider all of your options before making financial decisions. It’s tempting to spring for an office in the city. It’s exciting to imagine having a conference room dedicated to meditation. But if these expenditures don’t directly help the company in any way, it will only cause your business financial duress.

This same issue applies to your vehicle fleet. Is it better to lease your vehicles, or to buy them outright? How will leasing verse owning the vehicles affect your insurance?



Commercial fleet insurance is an essential business tool you’ll need should you experience vehicle trouble or accidents. As an added thank you for your business, insurance companies will lower your insurance premium based on certain criteria, such as ownership of the vehicles and their security.

So, is it better to lease or to own your vehicle fleet? Let’s take a look!

Leasing Vehicle Fleet—Benefits

Fleet Financials reports that “the most significant benefit to fleet vehicle leasing is greater corporate cash flow options.” In other words, making a smaller financial investment instead of purchasing the vehicles outright means that you will have more wiggle room in your SMB’s budget.

− Having a bigger budget (because the vehicles are leased) allows you to make other business decisions that can help empower the company. You can move office locations, discount services to loyal clients; the possibilities are endless!

Owning Vehicle Fleet—Benefits


− Owning the vehicles outright that make up your fleet gives you the freedom to choose what type of fleet insurance you purchase. Contracts on leased vehicles usually demand that the owner carries a particular type of auto insurance. Though rates and laws vary by state, a leased vehicle’s insurance is almost always more expensive.

− Because you own the vehicles, you can drive them however many number of miles, paint them in whatever color you choose (you can even customize your fleet with a professional vinyl wrap) and make customizations to the vehicle without having to go through the third-party leaser. When you lease a vehicle, you often have to follow a strict rule set, including not driving over a certain number of miles a week. You don’t have to worry about any of that when you’re the owner!

What Should You Do?

Clearly, this decision is not one to be taken lightly. Owning or leasing your vehicle comes with a list of pros and cons. On the one hand, you can save money by leasing your fleet, allowing to balance your budget and help you to see where money can be spent in other needed areas. However, if you buy your fleet, you can use the vehicles as you wish.

You should base your decision on one of two things:

− The purpose of the vehicle fleet
− How often the vehicles will be used

For example, if you own and operate a shuttle service, you will want to own the vehicles. If you own a catering service, you would probably benefit more from a lease agreement.

Whatever you decide, you can get your commercial fleet insurance from the same great place. Visit CoverHound for your free quote today.



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