New BVRLA Guide to Vehicle Funding

27 July

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, this easy-to-read 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 the recent 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.”

“This publication is a good starting place for any business exploring its fleet funding options.”

Dan Rees, senior manager in Deloitte Car Consulting said: “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 and it has been a pleasure to be a part of this project.”

Phil Robson, fleet sales director at Peugeot, believes the new guide is being launched at just the right time: “We are seeing growing fleet demand for our vehicles, which have a great whole life cost proposition. This guide will help make fleet buyers better informed, which can only be a good thing.”

About the BVRLA:
The BVRLA is the UK trade body for companies engaged in the leasing and rental of cars and commercial vehicles. Its members provide short-term rental, contract hire and fleet management services to corporate users and consumers. They operate a combined fleet of around 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK. Through its members and their customers, the BVRLA represents the interests of more than two million business car drivers and the millions of people who use a rental vehicle each year. As well as lobbying the government on key issues affecting the sector, the BVRLA regulates its members through a mandatory code of conduct.

 

About Deloitte:
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.

Member of Deloitte Touche Tohmatsu Limited

For more information:
Toby Poston – Head of Communications
toby@bvrla.co.uk
tel: 01494 545700
mob: 07979 756533