---
title: "Business Recovery: Is your lease option cheaper in the long run?"
description: Misleading cost estimates on fleet leases might appear attractive, but they end up costing your business more.
image: https://blog.avisfleet.co.za/hubfs/Imported_Blog_Media/business-Aug-24-2021-08-38-33-29-PM.jpg
---

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# Business Recovery: Is your lease option cheaper in the long run?

[By Avis Fleet](https://blog.avisfleet.co.za/latest-news/author/avis-fleet)

 August 24, 2020

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On the road to recovery post the pandemic, every business is looking to save money in today’s tight economic times.

 

In this blog we look at the cost of fleet leasing and how our Full Maintenance Lease solution is a reliable choice for your fleet.

 

 

![People meeting around table smiling at reporting graphs](https://blog.avisfleet.co.za/hubfs/Imported_Blog_Media/business-Aug-24-2021-08-38-33-29-PM.jpg)

 

## What you need to know when looking for a fleet leasing company

While it might be tempting for Fleet Managers to sign up for leasing deals that appear cheaper, it’s important to keep the big picture in mind. Here are a few examples of deals:

### **Residual**

A low interest rate is attractive, but it’s important to remember that there are other factors to take into consideration. Ultimately, the biggest factor to remember is how much risk taking is involved with the residual value.

For example, Avis Fleet could lease a vehicle and put a 45% residual value on it and take on the full risk, while competitors might put a 60% residual value on the same vehicle, but not take on all the risks.

 

At the end of the lease, if the leasing company hasn’t agreed to take on the risk and if the vehicle doesn’t achieve a good resale value – because the second-hand car market has taken a dip – then the leasing company re-assesses the vehicle and the shortfall will have to be paid by the customer.

### **Maintenance**

Even when the vehicle might seem like it costs less to lease from the outset, its maintenance might affect the overall cost.

 

For example, some entry-level cars in a fleet will be more complex to maintain because their parts have to be sourced from overseas. In addition, dealership footprints for these car brands are smaller than the more ubiquitous car brands.

 

Outsourcing your fleet management to Avis Fleet will mean that we take on the full risk and expense of [maintenance](https://www.avisfleet.co.za/solutions/managed-maintenance/), it is included in a monthly rental fee.

### **Total life cost**

This includes the retail price, level of depreciation, servicing and maintenance costs, company car tax and running costs. Typical running costs include fuel expenditure and the cost of replacing tyres.

## The cost of a Full Maintenance Lease

[A Full Maintenance Lease](https://www.avisfleet.co.za/solutions/full-maintenance-lease/) is a predictable monthly cost over a set period. With this lease option, Avis Fleet takes on the responsibility for your maintenance so you don’t have to worry about the long-term costs and risks involved with owning a vehicle.

 

You can get additional savings with a[fuel card](https://www.avisfleet.co.za/solutions/fuel-cards/) and even more with our diesel fuel rebate partnership.

 

Avis Fleet solutions are a comprehensive offering that enhances every aspect of fleet management.

 

We have solutions that help customers with everything from vehicle acquisition to maintenance, Telematics, and making provisions for accidents.

 

[Find out more about our fleet solutions here](https://www.avisfleet.co.za/solutions/), or contact us with your questions about our Full Maintenance Lease for your fleet.

 

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