BVRLA launches new guide to vehicle funding

THE British Vehicle Rental and Leasing Association has published its new ‘Guide to Vehicle Funding’.

 

Produced in association with Peugeot and Deloitte, the business advisory firm, the digital publication has been produced to help business decision-makers choose the most appropriate way of financing their vehicles.

 

Incorporating all the tax changes made in this year’s Budget, the guide helps readers compare the key features and accounting treatments of different funding methods including contract hire, finance lease, contract purchase, hire or lease purchase and outright purchase.

 

‘Credit is not as easy to find as it used to be, but locating independent information about different funding methods is almost as great a challenge,’ said BVRLA chief executive, John Lewis.

 

‘With companies focusing so hard now on the whole life cost and tax-efficiency of their fleets, it is more important than ever to choose the right type of vehicle finance.’

 

Dan Rees, senior manager in Deloitte Car Consulting, added: ‘Vehicle funding is an essential fleet decision. Various changes to tax rules have meant that there can be a big difference between the least and most expensive options, which is accentuated by the financial position of the acquiring company and the type of vehicle.

 

‘We recommend checking the financial comparison between buying or leasing a fleet car, particularly if this hasn’t been reviewed for some years. It is also important to ensure that the right cars are being acquired. Some vehicles have a better after-tax whole life cost than others, so it is always worth looking beyond the price to the total financial impact on the business taking into account hidden tax costs. This publication will provide help and guidance to industry professionals.’

 

The guide can be accessed on the BVRLA website at: www.bvrla.co.uk/Article/Detail.


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