All those who thought the Clean Car Discount and Clean Car Standard (two different things but interconnected, also called the Clean Car Programme) were never going to become a reality are now asking themselves “Maybe I can’t go out and buy that new – insert your vehicle of choice here – right now.”
If this sounds like something you’ve thought to yourself, or your financial controller or accountant has said, don’t be too discouraged.
There are alternatives to buying vehicles outright and the first alternative – leasing – has just become a whole lot more attractive.
We spoke to leasing provider FleetPartners to get a clearer view on why more SME businesses are leasing today and the impact that the Clean Car Discount (rebates and fees) is having.
Matt Fogarty – Head of Small Business Sales for FleetPartners – says that Clean Car Discount is the hot topic of conversation across all businesses.  
 “Our customers want to know the best way to navigate the range of rebates and fees. This has given leasing an advantage over owning outright. Say you want to lease a new vehicle at $60,000 and with the Clean Car fee price rise, that total goes up to $64,000.
“If you were buying the vehicle, that $4,000 is extra cash you would need to find which could be an uncomfortable increase in what you might have originally budgeted for.
“If you opted to lease rather than buy outright, by structuring the lease intelligently with your fleet partner, you can amortise the lease payments over a longer term, and keep within your monthly budget. For example, choosing a lease term of 53 months as opposed to the traditional 48 months”
Matt explains, “Your lease payment increase is negligible, which gives you more cashflow flexibility to plan the rest of your business outgoings.”
And since it is possible to lengthen the lease term to cover the new Clean Car feebate, you can also factor in the costs of customised fit outs or signage for the vehicles as part of the lease, rather than paying upfront.
“The company vehicle market has changed in a lot of ways,” says Matt, “and we have had to adapt over the last two years to respond to Covid and supply chain shortages. Corporate agility and understanding the swift changes in the vehicle industry have meant FleetPartners can strategically advise the best solution for our client’s and their unique situations
“There are still misperceptions about leasing, however. Our newer clients tell us they have found leasing to be a very attractive alternative to ownership and surprised at how easy the process was. They also have more insights on their fleet, cost certainty and safer, more efficient vehicles. Another interesting insight we have seen is that our customers tend to have happier drivers who are in newer and better quality vehicles. The Clean Car Discount that will continue from 1 April will also help our customers transition to lower emission vehicles more easily.
“Vehicle leasing is like a subscription service, which – thanks to platforms like Netflix and Amazon – has become a societal norm. Leasing is so much better than owning because there is always an expert on hand to help you make the right decisions. Leasing also allows you to pay as you go and the leasing company does all the hard work managing and maintaining the vehicle, making it hassle free.”
Matt points out a rising trend in small businesses investigating the benefits of leasing.
“You don’t have to have a huge number of vehicles to lease,” he says “there is no ‘qualifying number’ to worry about. A common myth is that you need to lease multiple vehicles at any time. But many of our customers start with one vehicle and add as they grow.”
While longer terms are handy for minimising the effects of increased vehicle pricing, lease companies like FleetPartners can also offer shorter term leases through their EzyDrive product. This is great for those who may want to trial leasing or who need a 12 month short-term vehicle solution.        
 “Our Fully Maintained Operating Lease is our most popular lease which bundles in the cost of your vehicle as well as maintenance, servicing and tyres. Our SME customers love it for the ease of budgeting and outsourcing the risk of rising costs and administration. They can also take advantage of add on services like discounted fuel cards, telematics, driver training and more. The true impact of the Clean Car Discount has only recently become known and by talking to FleetPartners, we can help navigate through the rebates and fees on vehicle choices and ways to take advantage of the programme.  
“We are currently seeing a lot of challenges in the market with vehicle stock shortages and supply chain issues. With inflation rising, increasing fuel costs and banks tightening up their lending, its harder than ever for businesses to have certainty. Leasing is a way to mitigate this changing environment.” Matt says.
If you have not considered leasing because it seems complicated, it really isn’t. Or you thought your one or two vehicle fleet didn’t seem worth the time or effort, it really is. Go to fleetpartners.co.nz to find out more about Clean Car Discount and what leasing can do for your business.