Almost two of three SME's would use vehicle leasing

Almost two out of three small-medium enterprises (SMEs) would consider using specific leasing products for cars and vans – although outright purchase still remains the most popular option. New research commissioned by Arval Mobility Observatory asked fleets, “to what extent are you interested in each of the following finance solutions for future vehicle purchase?” A total of 64% said they were “interested” or “very interested” in leasing with a purchase option or Financial leasing with residual value (RV) risk.

Meanwhile, more than half (56%) gave the same response for operating leasing that could include a full package of services with RV risk for the lessor while 45% opted for car credit. However, 73% backed outright purchase. Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “Leasing has been growing in popularity among SMEs for some years and the responses that we have recorded here indicate that further growth is likely in the future.

“The research suggests a widespread and sophisticated understanding of the benefits of different leasing products with and without the customer taking the RV risk, as well as knowledge of the type of additional services that are available.

“With the financial pressure that many SMEs are likely to experience in the wake of the pandemic, it is likely that products which remove the RV risk and provide a comprehensive vehicle package for a fixed monthly cost will have considerable appeal.

“However, the attachment of a large number of these smaller businesses to outright purchase remains considerable, although we expect this to probably soften in the coming years.”

These findings are drawn from the 2021 Arval Mobility Observatory Barometer, which provides a comprehensive and authoritative picture of the current trends affecting employee transport across the UK and Europe. Discover more at arval.co.uk/amo-insight.

Which funding solutions for cars and vans might you use in the future?

*Could include a full package of maintenance services