Navigating new vehicle leasing agreements can be daunting, especially for fleet managers responsible for making cost-effective and strategic decisions for companies.
This comprehensive guide will help you navigate the complexities of vehicle leasing, ensuring you secure the best deals and meet all your fleet’s needs.
Understand Your Vehicle Leasing Requirements
The first step in navigating a new vehicle lease agreement is understanding what you need for your fleet. This involves a detailed assessment of your fleet’s requirements and vehicle leasing budget, putting you in control of the process.
Here are some key considerations:
Engine Type: Electric, Hybrid, or Traditional Internal Combustion Engine (ICE)?
Electric Vehicles (EVs) are environmentally friendly and can significantly reduce fuel costs. They are ideal for companies committed to sustainability. The travelling range of EV cars and vans varies widely, so make sure you know roughly what mileage you plan to do weekly, monthly, and annually. This will help you choose the best EV for your business needs.
Hybrids offer a great middle ground. They provide environmental benefits and fuel savings while offering traditional vehicles’ range and convenience. Some hybrids offer Plug-in Hybrid (PHEV) models. These models are great for giving drivers a taste of electric-only driving. They can also act as an excellent transitional vehicle into a full EV.
ICE Vehicles are typically cheaper upfront and have a well-established infrastructure for fuelling and maintenance. They often have better residual values when it comes time to renew your contract.
Benefits of Each Engine Type – In Summary
Electric Vehicles offer lower running costs, tax incentives, reduced carbon footprint, quieter operation, and fewer maintenance needs due to fewer moving parts.
Hybrids offer better fuel efficiency than ICE vehicles, reduced emissions, and the flexibility of switching between electric and fuel power.
ICE Vehicles offer lower initial costs, are widely available across brands and models, and have established fuelling and repair infrastructure.
Type of Vehicle: Car, SUV, or Van?
Cars are ideal for businesses requiring efficient and economical transportation, particularly for sales teams, executives and business owners.
SUVs offer more space and versatility for transporting goods, equipment, or larger groups of people.
Vans are perfect for businesses transporting tools, products, or oversized items. If you need a van, consider whether it should be fitted with tools, workbenches, custom graphics or other fit-out options. Customisations can often be negotiated into the lease agreement, saving time, money, and headaches on aftermarket modifications.
Additional Considerations
Maintenance Contracts: Consider including maintenance contracts in your new vehicle leasing agreements. These contracts cover all servicing requirements and tyre needs, ensuring your vehicles are well-maintained, reducing unexpected downtime and repair costs, and minimising risk.
Fuel Cards: Determine if your fleet needs fuel cards added to your new vehicle leasing agreement. These cards can simplify fuelling and expense tracking, offer better control over fuel costs, and reduce administrative burdens. Ask about our Circle K fuel card partnership today.
EV Charging: If you’re considering electric or plug-in hybrid vehicles for your fleet, you will want to explore EV charging options for your drivers at work and, potentially, at home. Mahony Fleet works with our EV Charging partner, ePower, to help you choose the best charger from various options.
Steps to Negotiate Vehicle Leasing Like a Pro
- Do Your Research
Before entering negotiations, gather information about leasing options such as full leasing, fleet management and maintenance-only offerings.
Compare length-of-contract terms and the prices of different vehicle brands. The difference between an entry-level car and a mid-range car with better specs might be worth it if you plan on a three—or four-year term.
- Know Your Budget
Determine your budget for leasing vehicles. Consider all your costs individually, including monthly vehicle payments, maintenance, and additional services like fuel cards, tyres, breakdown assistance and maintenance contracts. Compare this with your new vehicle leasing quote.
- Assess Lease Terms
Carefully review lease terms such as mileage limits, wear and tear policies, and early termination fees. Ensure the terms align with your fleet’s usage patterns to avoid costly penalties.
- Negotiate Customisations
If you need customisations, such as tools and workbenches in vans or personalised vehicle branding, negotiate these into your lease agreement. Mahony Fleet can often include vehicle customisations that are cheaper than other aftermarket fit-outs if arranged upfront.
- Consider Total Cost of Ownership
Look beyond the monthly lease payments and consider the total cost of ownership (TCO). This includes fuel, maintenance, insurance, and any additional services. A lower monthly payment might not always be the best deal if added or hidden costs are higher.
- Ask About Maintenance and Support
Inquire about Mahony Fleet’s support and maintenance services. We provide comprehensive maintenance contracts that cover all servicing requirements and tyre needs. This can significantly reduce downtime and unexpected repair costs.
- Evaluate End-of-Lease Options
Understand your options at the end of the lease term. Can you purchase the vehicle at a residual value? Is there an option to renew the lease or upgrade to newer models? Knowing your options in advance can help you make long-term strategic decisions.
Final Tips for Successful Vehicle Leasing Agreements
Build Relationships: Establish a good relationship with your Mahony Fleet account executive. Having an expert who you know on a first-name basis can alleviate vehicle leasing-related worries.
Get Everything in Writing: Ensure all negotiated terms and agreements are documented in the lease contract. This will ensure you have peace of mind about what is included in your new vehicle leasing agreement.
Don’t Settle for Second Best: For many business executives who drive company vehicles, their car or van is equivalent to their second office. If you plan on a lease agreement spanning 36 or 48 months, enquire about vehicles you or your drivers would be happy to use over several years. It will be worth it in the long run.
To summarise, navigating a vehicle lease like a pro involves thorough preparation, a clear understanding of your fleet’s needs, and some strategic negotiation on your part.
By considering all aspects, from the type of vehicle and engine to additional services like fuel cards and maintenance contracts, fleet managers can secure the best deals and optimise their fleet’s performance and cost-efficiency.
We hope this article has been informative and has answered many of your questions about new vehicle leasing agreements. If you have any questions or want to know more about what Mahony Fleet can offer, contact us at (01) 866 0520 or enter your details into the online submission form below.
Whether your fleet is big or small, Mahony Fleet, with our extensive experience and expertise, will help you make the right choices throughout your vehicle leasing contract, giving you the confidence and reassurance you need throughout your fleet leasing journey.
