An online supermarket business has decided to lease delivery vehicles rather than purchase them - HSC - SSCE Business Studies - Question 11 - 2004 - Paper 1

The primary purpose of leasing delivery vehicles instead of purchasing them is to limit the capital costs of the business. Leasing allows the online supermarket to avoid the large upfront expenses associated with buying vehicles, enabling it to allocate funds more effectively and maintain cash flow. This strategy can also provide financial flexibility and reduce financial risk, as leasing often includes maintenance and support services.