Every fleet manager thinks the same thing: “How can I cut costs and help get the most out of my budget?” McMahon Fleet Solutions has the answer: fleet leasing. This article breaks down the sevenfold benefits associated with fleet leasing programs.
January 15, 2021
When you lease a vehicle through a fleet leasing program, you have a smaller up-front investment. A smaller down payment allows you to have more funds available to use for other business activities (i.e., improved cash flow). Other financial benefits include potential tax benefits and lower monthly premiums!
Open-ended leases provide flexibility and have a short minimum term of one year. At the end of the term, you can purchase, sell, or continue to lease monthly so you can easily upgrade your fleet when your budget allows. Most open-ended leases also contain a terminal rental adjustment clause, known more commonly as TRAC. This clause guarantees the vehicle owner (in this case, it would be the lease's provider) a predetermined value for the vehicle upon sale at the end of the lease. If the selling price is less than that predetermined value, the lessee is responsible for paying the difference, but the lessee is credited with the surplus if the selling price is higher.
On the other hand, closed-ended leases are not flexible; you will have a fixed monthly rate for a fixed term and can include mileage restrictions and wear and tear provisions. This type of fleet leasing is also referred to as a “walk-away lease.” Month-to-month the costs are higher, but when the lease is up, the lease provider is solely responsible for the vehicle. Assuming there is no damage to the vehicle and the mileage is within the lease allowance, you can turn the vehicle in at the end of the lease with no additional obligations.
The benefits of fleet leasing include the resources, tools, and programs available to help your business boost productivity and become more efficient. This support covers everything from maintenance management coordination to fuel programs to collision repair coordination—talk about one-stop shopping!
Your business will not only be perceived as impressive and successful, but the new and dependable vehicles in your fleet can be equipped with the latest safety features, keeping your employees safe on the road! They can travel quickly and efficiently, with GPS services available.
This one seems pretty obvious, but when you participate in a fleet leasing program, the vehicles you receive are typically newer and have factory warranties. As a result, they need less maintenance. Not only does that cut repair costs, but your vehicles spend less time out of commission, increasing productive labor!
Did you know that your lease provider can coordinate personal property taxes, tag and license renewals, and title retention? Think of all the time and headaches your administrative staff will save when you lease vehicles through a fleet leasing program!
Last but not least, you can get the vehicles you want and need! When you lease with fleet leasing programs, you have greater access to vehicles (locally and nationally). This level of access often results in lower costs! You will be able to equip your fleet with the exact vehicles you require for day-to-day business. And when the vehicles in your fleet are ready to be recycled, a fleet leasing company can help you dispose of the vehicle locally or nationally, ensuring you obtain the best price possible for the vehicle!
Contact McMahon Fleet Solutions today to learn more about our fleet leasing program by giving us a call at 1-866-McFleet (1-866-623-5338) or by emailing firstname.lastname@example.org