In most businesses, the fleet manager will be in charge of setting up agreements with fleet leasing companies, or as part of the team of management that negotiates the contract.
As the fleet manager, particularly if this is the first time working with fleet truck leasing companies, there are a few tips, strategies and important factors to keep in mind. These will ensure that you get the best possible leasing arrangement to suit your immediate needs as well as what you will need in the future.
There are several different options to consider with fleet truck leasing when it comes to the actual lease itself. The closed-ended lease is the more expensive option, but it also ensures that you will simply have to return the vehicle at the end of the lease, nothing additional will be pending. This is, of course, providing you have not exceeded mileage or other clauses in the lease agreement.
Open-ended leases are slightly more costly over the term of the lease, but there is built-in flexibility for the company. There isn’t a residual value in the contract, which provides the option for the company at the end of the lease. There is also the ability to turn in the vehicle at any time, which may be an important consideration.
When looking into fleet truck leasing, pay particular attention to any limitations on the lease. Typically this will include mileage, but there can also be issues with what is defined as “normal” when it comes to actual wear and tear on the truck. Some types of vehicles are just going to be a higher risk for damage than others, so it is critical to nail down those issues and not assume what is meant by the term.
Comparing the additional services that a truck leasing company provides is also critical. Some companies will handle everything from getting tags and titles to vehicle inspections, upfitting, and full maintenance services.
The number of services will impact the cost of the lease, but when these services save you time and money, they are often well worth the small additional price.