Fleet Leasing Can Help Extend Tight Budgets

fleet managmentIt was recently announced that the City of Colorado Springs is looking to outsource its fleet division as part of a major effort to reorganize its departments. The city’s mayor Stephen G. Bach said this effort is designed to allow the city’s government to “live within its limited financial resources” and be the “‘best in class’ city of its size.” Bach’s plan calls for the city to partner with Colorado Springs Utilities (CSU, a local utility services provider) in order to completely outsource the city’s and CSU’s fleet division functions to a private-sector company.

This is a trend that we are seeing more and more of – public agencies, human service companies, and the private sector are all seeking alternatives to their fleet purchasing and management. Current economic conditions have forced fleet managers to seek alternatives to funding their fleet through different financing arrangements and leasing. Leasing and fleet management are practical solutions for these fleets, which in the past were used only by the private sector.

In the past, most government fleets did not lease vehicles, they purchased them. The belief was that public fleet vehicles would just be run into the ground in order to get the most out of the investments. However, this type of approach leads to increased fuel costs, especially as vehicles age, and exorbitant maintenance costs. And when the vehicles are finally “run into the ground,” there is the challenge of figuring out what to do with them.

Leasing and fleet management can help organizations maintain younger fleets, manage fuel and maintenance costs, and deal with depreciating assets within their limited budgets. Leasing also presents an opportunity for an organization to generate a sizeable amount of cash while replacing vehicles overdue for renewal. This practice is known as a sale/leaseback and enables the fleet organization to sell assets to a leasing company and lease them back. If the organization is creditworthy, and depending on the fleet size, the sale of its fleet assets could mean a large amount of money for the organization.

At Capital Lease Group, we work with numerous human services, public agencies, and the private sector. We have years of experience working within these specialized fields. As a result, we are familiar with what the needs and concerns are as they apply to their vehicles, from trucks to heavy equipment to sedans to wheelchair vans to activity buses. And we work with each organization to determine the most appropriate type of lease arrangement and associated maintenance plans. Please feel free to contact Capital Lease Group to find out how fleet leasing could help your organization save money.

 Capital Lease Group is a leading fleet leasing provider in Massachusetts and beyond. We are committed to structuring a lease that will be designed to fit your business rather than having your business conform to the confines of a standard lease. We will invest the time to understand each customer’s individual needs while offering a full range of leasing services and products that will complement each customer’s goals. Our experienced staff of knowledgeable experts in sales, administration, and service will help you feel comfortable so that your main focus will be on your company’s vision while we handle all of your fleet requirements.