5+1 myths about operational leasing

Many procurement managers and decision-makers assume that purchasing a vehicle outright, despite being a large one-time expense, is still more cost-effective than paying monthly rental fees over several years. However, this calculation often overlooks the Total Cost of Ownership (TCO), which includes all operational expenses throughout the vehicle’s lifespan. With operational leasing, businesses only pay for the actual usage-related financing and operating costs, without having to worry about long-term expenses or the risks associated with selling a used car. In the long run, operational leasing can result in significant cost savings for companies.

In most cases, operational leasing offers a fixed monthly fee for the entire contract term. This fee includes all expenses related to vehicle operation, such as maintenance, servicing, insurance, taxes, 24/7 roadside assistance, and even a replacement car in case of breakdowns. This predictable cost structure allows businesses to plan their budgets with confidence, without unexpected expenses. Additionally, if a vehicle encounters an issue, a replacement car is immediately available, ensuring uninterrupted mobility for the company.

Many businesses fail to anticipate the administrative burden and additional costs associated with purchasing company cars. At first glance, operational leasing may seem complex due to the multiple components included in the lease fee. However, the process is transparent and straightforward. The leasing company, as the legal owner of the vehicle, takes care of taxes, tire replacements, maintenance, insurance management, and even replacement cars when needed. This means companies can focus on their core operations while handling just a single invoice at the end of the month.

Business needs are constantly evolving, as is automotive technology and industry regulation. Today, operational leasing is not limited to 3–5 year contracts or brand-new vehicles. For companies requiring shorter commitments or vehicle testing options, Ayvens offers flexible leasing solutions starting from just one month, with no fixed contract period under its Flex service. For those looking for lower monthly costs, used car leasing is also available. Additionally, businesses with their own fleets can outsource fleet management services (management-only) or specific tasks (insurance only). Companies can even sell their existing fleet to the leasing provider, which then leases the vehicles back to them (leaseback).

Companies often hesitate to commit to long-term agreements, fearing unexpected costs over multiple years. However, several unforeseen expenses can arise during a car’s lifecycle. What happens if the car breaks down or is damaged in an accident? How much will repairs and insurance claims cost the company? How much will I be able to sell the car for when I no longer need it or when I want to buy a new one? Operational leasing covers all these risks within the monthly fee because the leasing provider handles insurance claims, repair management, and assumes the residual value risk at the end of the lease period.

In Hungary, ownership is often preferred, including when it comes to cars. Some believe that a leased vehicle simply cannot provide the same experience as an owned one. However, at the end of a lease, the user can purchase the vehicle at market price if they wish to keep it. However, most companies choose not to do so, as they enjoy the freedom of always driving a new car that best suits their needs. Leasing allows for seamless upgrades to newer, better-equipped vehicles without financial complications, as the transition costs are built into the new lease agreement.