Fleet Leasing FAQs: What Businesses Need to Know

For many Canadian businesses, vehicles are the backbone of daily operations. Whether you run a fleet of trucks, vans, or specialty vehicles, one of the first decisions is how to finance them: buy, finance, or lease. At Somerville National Leasing, we specialize in fleet leasing solutions that give businesses flexibility, cost control, and the ability to scale. If you’re exploring your options, here are some of the most common questions companies ask about fleet leasing.

1. What makes fleet leasing different from buying?

Buying or financing can be a good option if you plan to keep vehicles long-term and want to build equity. But leasing offers businesses predictable monthly payments and flexibility without tying up large amounts of capital.

Unlike consumer-style leases, fleet leasing is designed for businesses. It often includes:

• Flexible terms
   
• No mileage restrictions (with open-ended leasing structures)
   
• Options at lease-end, such as purchasing, extending, or selling the vehicle
   

This flexibility makes fleet leasing especially attractive for businesses that need vehicles working hard every day.

2. How does fleet leasing help with cash flow?

One of the biggest advantages of leasing is the ability to preserve cash. Instead of paying the full purchase price upfront, you spread the cost over predictable monthly payments.

With Somerville, you can also include vehicle upfitting and customization costs in your lease — from service bodies and shelving to decals and branding. This means your fleet vehicles arrive work-ready without large upfront expenses.

3. What happens at the end of a fleet lease?

At the end of a lease, businesses typically have several options:

• Return the vehicle and upgrade into newer models
   
• Extend the lease if the vehicle is still in good condition
   
• Purchase or sell the vehicle depending on its market value (common in open-ended leasing structures)
   

This gives companies the flexibility to adjust their fleet size and mix as their business evolves.

4. Are there tax advantages to leasing in Canada?

Yes. In Canada, lease payments are generally deductible as an operating expense, which helps lower your taxable income. This treatment provides a cash flow advantage compared to tying up capital in vehicle ownership. For financed vehicles, businesses may also deduct interest and claim depreciation. The right choice depends on your fleet size, usage, and long-term plans — many businesses find leasing to be the more tax-efficient option.

5. Is fleet leasing better than buying for business fleets?

Both approaches have their place. Buying or financing makes sense if your company plans to keep vehicles for many years. Fleet leasing, on the other hand, is ideal if your business values flexibility, predictable costs, and the ability to refresh vehicles regularly.

Fleet leasing also helps reduce the risk of being tied to depreciating assets, while giving you the freedom to scale up or down as needed.
Fleet leasing offers Canadian businesses the control and flexibility they need to manage their vehicles effectively. From reducing upfront costs to providing end-of-term options, it’s a powerful tool for companies that want vehicles that work as hard as they do.

Want to learn more about how fleet leasing can benefit your business? Connect with Somerville National Leasing today — supporting fleets from 1 to 200+ vehicles across Canada.