Types of Vehicle Leasing
Is this the right option for your company?
Ask yourself these questions:
- Do you like the idea of an accurate/fixed budget?
- Do you like to change vehicles every 2 to 4 years?
- Is your mileage fairly predictable?
- Would you rather not deal with the residual risk of this asset at the end of the lease?
- Do you want to stay out of the used vehicle market?
If your answer is yes to any of the above questions, Closed-End may be the right choice for your fleet. Maybe, only a portion of your fleet would be the better choice? Our Capital Lease Group staff will assist you in determining what the right choice is, and if it is determined that it is what fits, we will provide you with the security of guaranteed costs for the term of the lease with no residual risks at lease termination.
Is this the right option for your company?
Ask yourself these questions:-
- Have you always owned and believe that is the best way to go?
- Do you like the idea of having term flexibility?
- Do your vehicles put on very high mileage?
- Do you like to depreciate your vehicles over a long period of time?
- Do you have specific requirements for your vehicles that would require an up-fit beyond the manufacturer?
If your answer is yes to any of the above questions, Open-End may be the right choice for your fleet. Flexibility of term and time makes Open-End leases a favorite of many companies that like the idea of making a decision to stop the lease when they feel it is time. Our Capital Lease Group staff will assist you in determining what the right choice is, and if it is determined that it is what fits, we will provide you with the security of knowing your decision has been based on fact rather than smoke and mirrors
TRAC leasing is a modified Open-End lease that allows you the same flexibility of the traditional Open-End lease but without needing to depreciate the vehicle down to zero over a specified period of time.
TRAC Leases are becoming the choice of many companies who feel open-end leases present the best alternative. The reason being – you depreciate only that portion of the vehicle you feel you will be using. All vehicles have a residual, or the value of the vehicle when the term of the lease has expired. TRAC leases allow your company to set that residual (value) at what you feel it may be worth at lease end. At Capital Lease Group, we will assist you with what the industry feels will be the correct residual and you may make the determination whether to use that suggestion, or arrive at your own.
One of the goals of the TRAC is to possibly have it set up as an operating lease. Our Fleet Management Consultants will help with that process as well.
The Capital Lease Group Equity Lease
Capital has just announced a new lease structure that takes the upside of all the above lease alternatives and limits the downside of each.
It’s our hybrid lease: the smartest way ever to acquire and finance your fleet.
Equity Lease™ from Capital Lease Group combines the best of previous lease options to maximize your opportunities while minimizing your expenses and risk. Choose Equity Lease when you want to:
- Support fleet objectives in every department – finance, operations, sales, and more – and at every level of management, from Team Leader to CEO.
- Minimize the downside of vehicle diminished value risk while maximizing your ability to recoup vehicle life costs.
- Increase company cash flow at acquisition, during the vehicle’s life, and at disposal.
- Use proven external service providers, reserving your labor costs for generating revenue.
- Manage your out of state vehicles more effectively, track repairs and maintenance accurately and leverage warranties better.
The Purchase Leaseback option allows those companies that either own, or lease from another source, the ability to sell their fleet to Capital Lease Group at fair market value.
Some of the realized benefits of a Purchase Leaseback program are:-
- Immediate Cash Flow
- Vehicle will remain in your fleet
- Choice of term and program for new lease
- Improved Balance Sheet
Check out the possibilities and allow Capital Lease Group to demonstrate how you will be able to simplify your companies fleet management program.
Recent Blog Posts
Jan 13, 2015 How Fleet Leasing Helps Keep One Company’s Fleet Up-to-Date and Focused on the Bottom Line
A story in Business Fleet, Leasing Keeps Pest Control Fleet Up-to-Date, highlights an interesting fleet leasing case study of a New Jersey-based company, Bug Doctor Termite &…