What is fleet management?
Fleet management is a service and process whereby a company outsources all vehicle acquisitions, mechanical services and fuel purchases, telematics, remarketing, etc. to a fleet management company (FMC).
What is the difference between a vehicle rental and a lease?
Rentals and closed-end leases are similar in structure and are usually both subject to a kilometre restriction. While rentals can offer shorter terms (flexibility), leases with 12-month terms or longer will likely offer lower monthly payments. Open-end leases can offer flexibility concerning end-of-lease options such as no excess kilometre charges, and lessee buyout options.
My company vehicles operate at high kilometres. Can a lease still work for my business?
Yes, leases can be structured to accommodate high kilometres while avoiding excess kilometre charges and wear-and-tear clauses.
Why should I lease a fleet vehicle?
If you operate five or more vehicles, it is usually more cost-effective to consider this financial alternative. Speaking with a fleet management company can offer additional insight into the benefits of leasing.
How does my business get started leasing a fleet truck or van?
Most franchise dealers and fleet management companies (FMC) can offer you a lease proposal, but it is typically only an FMC who can outline, in detail, the financial and operational life cycle benefits of leasing.
Why shouldn’t I lease all my vehicles from franchised dealers and their OEM’s captive finance companies?
In some cases, it may make sense for one or two high-end vehicles. If you operate a fleet of 5 or more vehicles, it is likely more beneficial to work closely with a fleet management company that can help support all your vehicle needs from vehicle selection, acquisition, lease structures, fuel and management programs, and vehicle cycling. Fleet management companies provide valuable data that can help identify and implement cost-saving strategies.
How do I select the most appropriate FMC or leasing company?
We strongly recommend you interview a few who have the financial resources, reputation, and experience to meet your diverse business vehicle needs.
Can someone buy and sell vehicles on my behalf?
It is possible, but we recommend you speak to a qualified fleet management company to properly assess your fleet needs.
Can I lease all used trucks?
Yes, if it makes good life cycle economic sense versus new vehicles. An FMC can analyze both scenarios and recommend a program that fits your needs.
To learn more about how vehicle leasing and fleet management services can help your business, contact us today.