Great Company Cars to Lease

By Stuart Johnston

In America, about a third of new vehicle acquisitions are leased, rather than financed, by the more traditional  instalment sale (hire purchase)  that has been common here for many decades. However, according to leading financial institutions, there is a definite swing towards leasing, particularly amongst businesses.

The way both lease contracts and installment car financing contracts  are structured, there are not huge financial benefits in opting for either one or the other. However, for businesses there can be tax benefits in having vehicles listed on their books as expenses, rather than assets. Another advantage of leasing is that the company does not have to go to the trouble of actually selling on a vehicle, as it is merely reclaimed by the leasing company at the end of the lease agreement.

A disadvantage may be that lease agreements are specific about mileage covered, and penalties are imposed by the leasing company if a client wishes to terminate the lease agreement earlier than the period stated in the original contract.

Unlike in America, where some really luxurious cars are often leased, cars that are leased in South Africa often fall into the “fleet” category. These are  the no-nonsense models that are ideal for usage by company employees, either  as part of a remuneration package, or for work purposes, such as  visiting clients, or delivering light items, typical of goods that might be handled by a courier company

So what are the top three cars to lease? AutoTrader has come up with a short-list:

Nissan Micra

The Nissan Micra is available here in three basic models, the entry-level Visia, the mid-range Acenta, and the top-of-the-range Acenta Plus. Although not an immediate choice as a fleet-type vehicle because of its stylised good looks, the new Micra has a sense of solidity that will see it wear well over a period of a few years. And also, employees who are graced with a high-style vehicle as a company car tend to be well-motivated to work hard!

All three new-gen Micra models are powered by the same three-cylinder 898 cc turbocharged petrol engine and a five-speed manual transmission. The new Micra was launched earlier this year, so it will remain contemporary for at least the next five years. And this means that its residual value will remain comparatively strong.

A definite plus-point for the Micra will be its fuel consumption figures.  Even the most lead-footed staff member should be able to return consumption figures in the 6,5-litres/100 km range, while careful driving will see the baby Nissan dip under  the 6.0 litres/100 benchmark.

The new model sees a huge upgrade in interior sophistication for the Micra, and the materials used for dashboard, door panels and seat covering are far superior to those used in the previous model. It has  sound handling and ride quality, and it’s little engine has been well-proven here, notably in the Renault Clio entry-level models. The purchase price is lusted currently at R242 900 for the entry-level model, which is the one we’d recommend for fleet usage.

Volkswagen Polo Vivo

The latest Volkswagen Polo Vivo is in essence the previous-generation Polo, which means it is one very sophisticated little car for this level in the market. The Polo Vivo and its more freshly-designed and slightly larger Polo  sibling have been topping the passenger car sales charts in South Africa for the past eight years and there is a good reason for this. They are beautifully designed and engineered cars, with a ride quality and cabin ambience that is above their station, so to speak.

The current Polo Vivo range  kicks off with the 1.4 Trendline model and tops out with the 1.0 TSi GTI model, which is not suitable for fleet use, unless of course you are the company CEO and you are buying it for your wife to use !

The two models to consider here are the base Trendline which is quite modestly powered at a mere 55 kW, and the 1.4 Comfortline, which has a 63 kW petrol engine and would be our choice. Utter dependability is what you’ll be getting with this car, although make sure it is well-insured and has plenty of theft protection, as they are favourites on the car-jackers’ shopping lists too.

The fact that VWSA sell well over 2 000 examples each and every month means that there will always be good demand for a well-maintained used  Polo Vivo,  if you are buying it on installment contract, and this always translates to a good residual value. New price as of now for the 1.4 Comfortline  is R196 800

Toyota Corolla Quest

This car could well have been called the Fleetline! It is the archetypal fleet sedan in this country, along with the Nissan Almera. This is not a bad thing, in this context, because the Toyota Corolla Quest offers a lot of car for the money.

Like the Polo Vivo, the Toyota Corolla Quest is based on the previous-generation model of the car that was sold here as a full-status Corolla until 2014 when the new, larger Corolla model was introduced. This new Corolla represented a big step forward in terms of body shell rigidity, steering feel and trim levels.

But all that doesn’t matter in the Corolla Quest, because when you are driving the car, all you can think is: This is one heck of a lot of reliable motor car for the price!  Huge boot, acres of rear leg room, fittings that don’t exactly look plush, but look as if they’ll last for decades.

The Quest comes in three basic models, all fitted with the under-stressed 1,6-litre 90 kW four cylinder engine. There is a choice of five-speed manual gearbox or four-speed auto.  Consumption will vary between about 8,4 litres/100 and 9,0 litres/100 for the automatic. The good news is that at a starting price of R217 400 for the Corolla Quest 1.6, or  R234 300 for the Quest 1.6 Plus, you will probably get surprisingly  close to that asking price when the time comes to trade,  in four or five years. Such is the reputation of Toyota in this country!