SMEs plan investment in new company vehicles » SMEInsider

SMEs plan investment in new company vehicles

New company vehicles are one of the top investments small businesses are planning to make in 2015.

Lex Autolease’s bi-annual Business in Britain survey of 1,500 companies found that almost half (48 per cent) of all management teams plan to raise money to invest in their businesses in the first six months of the year.

No surprise there. But the survey did show that small firms in the construction and transport sectors planned to replace their current transport vehicles, with 28 per cent and 20 per cent of respondents respectively planning to either invest in buying or leasing a company vehicle this year.

Eight per cent of other small businesses also identified vehicles as a key point of investment, along with other frequently-named priorities such as new plant and equipment, employee training and overseas expansion, Fleetnews reported.

“It’s significant that company cars and commercial vehicles remain on SME’s shopping lists, despite a reduction in business confidence,” said Andrew Hogsden, senior manager of strategic fleet consultancy at Lex Autolease.

“This signals a growing appreciation of the wider benefits of investing in vehicles, such as maintaining a professional image, reducing carbon emissions by operating a more fuel efficient vehicle  as well the many other efficiency benefits of running newer vehicles.”

As cautious optimism remains the prevailing mood of the day, we expect to see an increase in small businesses opting for vehicle leasing over outright purchase as a means of managing costs and accessing the vehicles they need to grow,” he added.

The Business in Britain report also recorded a more cautious outlook from SMEs in the New Year. Firms are lowering their expectations of profits and orders for the first half of 2015, and therefore the ,the report’s key confidence index has decreased by 10 points to 43 per cent, down from a record high in the last survey in July 2014.