Which type of fleet management option provides increased cash flow?

Leasing vehicles is a fleet management option that provides increased cash flow primarily because it requires a lower upfront investment compared to purchasing vehicles outright. When a business leases a vehicle, it makes periodic payments over the lease term, which allows the company to preserve its capital for other operational needs or investments rather than tying it up in a vehicle purchase. This approach can also lead to tax benefits, as lease payments are often tax-deductible as business expenses.

Additionally, leasing typically allows businesses to acquire newer models more frequently without committing to long-term investments in their fleet. This can enhance operational flexibility and keep fleet costs predictable, further contributing to improved cash flow management.