AfMA Fleetdrive Issue 20 | Page 33

LOOKING BACK: FLEETDRIVE ISSUE 16 FLEETDRIVE Government and private business are responding to market preferences with infrastructure investments, ensuring that drivers who want to charge more regularly have increased access to chargers when they are away from their homes and office. All the major parties in this year’s federal election have committed to an EV strategy, which is a positive indicator that we will continue to see infrastructure roll-out across Australia in the coming years. Leasing vs Purchasing affect your financial outcomes and should be considered as alternatives depending on your business situation. You know your fleet and business needs best, but here are some top considerations that you should keep in mind when deciding if you should implement new vehicles into your fleet operations. 1. Financial considerations Until that coverage is complete, the Outlander PHEV is a great transitional vehicle, ensuring that when Australia gets more EVs and charging infrastructure, drivers are already prepared. 2. Meeting business needs When it comes to meeting the needs of the business, key cost levels include whether you anticipate a high- or low- turnover rate, whether you have lots of wear-and-tear and whether you need high-investment specialty vehicles. In order to achieve an optimal outcome, you should be clear on these factors. Leasing is essentially paying for the use of the vehicle, without taking on the asset and associated costs such as administration or servicing. Leasing is often a lower monthly cost when compared to the cost of buying a vehicle, 3. Fleet maintenance which can help you preserve capital budget and The number of vehicles your company needs to reduce liability. And, lease vehicles are often newer, maintain can be a deciding factor about whether which improves overall safety and fuel economy. to own or lease a vehicle. For smaller fleets, paying At the onset, buying vehicles tends to be the for and organising general servicing may be cost most expensive option when compared to the and time prohibitive. For larger, distributed fleets monthly agreements often associated with there is a high administration overhead related leasing. However, there are other benefits to organising servicing. In these cases, fleet associated with buying such as controlled maintenance at a predictable cost through a lease depreciation or mileage. These aspects that can is often the clear and obvious choice. ISSUE 20 2019 / WWW.AFMA.ORG.AU 33