A NEW survey suggests most SME fleets prefer to outright purchase their vehicles.
While leasing is the second most preferred option, locking up cash in depreciating assets was the choice of 41% of the fleets in the survey.
The Vehicle Buying Survey 2022, run by telematics company RAM Tracking, also found that SME fleets sold on their ex-fleet cars privately, while the second most favoured option was to part-exchange for a new vehicle. The typical fleet lifecycle was three years, and most of the respondents ran commercial vehicle fleets.
Mix Of New And Used Replacement Vehicles
More than 50% of SME fleets said they procured new vehicles for their fleet; 25% said they only bought secondhand vehicles; and the remaining 19% said they bought a mix of both new and used vehicles.
Perhaps responding to the uncertain economy, 60% of the businesses surveyed said they have no intention of changing or expanding their fleets this year.
Nick McClellan, Managing Director at RAM Tracking, commented:
With costs rising significantly, it is not surprising that many fleets are electing not to upgrade their vehicles this year. However, it comes as a surprise that the most popular method of acquiring vehicles is via outright purchase.
With the financial pressure that many SMEs are likely to be experiencing, it is probable that products which remove the residual value risk and provide a comprehensive vehicle package for a fixed monthly cost will have considerable appeal, so it will be interesting to see if businesses move towards leasing in the 2023 edition of our survey.