Electric vehicle fleet financing is one of the key questions for a fleet manager and a common way to finance your EV is through fleet management companies (FMOs).
There are many different ways to finance vehicles and here is an overview of the different options available for fleet vehicle finance.
Fleet financing options explained
The following are some electric vehicle fleet financing options for businesses looking to fund vehicles in their fleet: [1] [2]
| Finance type | Business financing | Truck financing options |
|---|---|---|
| Finance lease | Allows your business to use a commercial vehicle while the lender retains vehicle ownership. | The lender purchases a truck on your behalf and then leases it to you. |
| Commercial hire lease | A business car loan allows you to hire a car from a lender for an agreed period. | Your business hires a truck from a lender for a predetermined period. |
| Chattel mortgage | Involves a lender lending you the money to purchase a vehicle. | Involves a lender providing the money you need to purchase a truck, and you are then required to make regular repayments to pay down the loan amount. |
| Novated lease | A vehicle finance option that allows employees to lease a vehicle using their pre-tax income. | |
| Business loan | Standard business finance to fund the purchase of a vehicle. | |
| Car loan | Regular car loans available to businesses, but without the tax benefits of other business vehicle finance options. | |
| Personal loan | Only really an option for purchasing a truck if the vehicle will be used for both personal and business use. |
Fleet vehicle leasing
Fleet leasing companies lease vehicles to businesses and government institutions. Fleet vehicle leasing companies also offer fleet management services and novated leases. Vehicles that can be leased include small and light cars, medium and large cars, SUVs, light commercial vehicles and heavy commercial vehicles. [3]
You can source electric vehicles through fleet management companies (FMOs) and fleet leasing companies. Some key industry players in Australia include: [4]
- SG Fleet
- Eclipx + McMillan (merger)
- LeasePlan
- Toyota Fleet Management
- Custom Fleet
- Smart Group
- ORIX
- Fleetcare