Operational Leasing vs Fleet Purchase: A Guide for Companies

Why the Corporate Fleet Decision Matters

Corporate vehicle fleet management represents one of the largest expense categories for companies in Turkey. Especially for companies that need vehicles for their sales teams, executives, and field personnel, the fleet decision directly impacts profitability.

As an Account Manager at Hedef Filo, I experienced the difficulty of this decision alongside my clients every day. Since every company's cash flow, growth plans, and operational needs differ, there's no single right answer. But there is a right analytical framework.

Operational Leasing: Advantages

Cash flow protection: You can build a fleet with fixed monthly payments without a large down payment. This is particularly valuable for growth-stage companies.

Cost predictability: Packages that include maintenance, insurance, tires, and even roadside assistance mean your monthly fleet cost is predetermined. No budget surprises.

No residual value risk: Vehicle depreciation is the leasing company's responsibility. Market downturns don't affect you.

Continuous fleet renewal: At the end of typically 3-4 year contracts, your fleet is refreshed. Your employees always use current and safe vehicles.

Fleet Purchase: Advantages

Long-term cost advantage: If you plan to use your vehicles for more than 5 years, purchasing can be more advantageous in total cost. This difference becomes more pronounced in low-mileage fleets.

Asset ownership: Vehicles appear as assets on the company balance sheet, which can provide advantages for certain financial indicators.

Flexibility: No mileage limits or early return penalties found in leasing contracts. You can sell or reallocate vehicles at any time.

TCO Analysis: What's the Real Cost?

Total Cost of Ownership (TCO) analysis forms the core of this decision. My banking background was hugely beneficial here — instead of just comparing lease payments with installment amounts, I could offer clients a comprehensive analysis covering all cost items.

"Don't make fleet decisions based solely on monthly payment amounts. Factor in insurance, maintenance, tires, depreciation, opportunity cost, and administrative expenses. The real picture only emerges through TCO analysis."

Conclusion

The right fleet decision depends on your company's unique circumstances. Neither operational leasing nor purchasing is always best. What matters is conducting a comprehensive TCO analysis to determine the model that best fits your company's specific needs.