Is leasing mainly for big business?
No. Individuals and small fleets can enjoy the
same advantages that make it smart for large fleets to
lease. Leasing may provide:
- Low monthly rates.
- The opportunity for a
minimal down payment.
- Simplified expense
records for tax purposes.
- Availability of cash
that would otherwise be tied up in a car or truck.
do large companies lease? Most frequently they lease to:
- Turn fixed assets into
working capital to be employed in the company's
- Convert fleet vehicles
from capital items to expense items, thereby removing
them from the balance sheet and increasing net worth as
well as borrowing power.
- Cut the paperwork and
administrative expenses involved in fleet ownership.
- Get out of the used car
- Enhance the company
image with late-model vehicles.
- Move fleet management
responsibility out of the company and into the hands of
What kind of vehicles can be leased?
All makes and models with all available equipment
or options. However, a good leasing dealer/company will
offer advice as to the most practical vehicle(s) for your
What does it cost to lease?
It depends on the kind of vehicle(s) you want and
the equipment you desire. Also, it depends on the type and
length of the lease and anticipated mileage. Such items as
insurance and maintenance may also be included in the
contract. The only way to get a dollar and cents answer is
to discuss your specific requirements with a reputable
leasing representative and let him or her develop an actual
rate for you.
there mileage limitations on leased vehicles?
Yes, there are usually mileage limitations on
both open-and closed-end contracts. One of the factors that
determines a lease rate is anticipated mileage. Should the
predetermined limitation be exceeded, resale value will
probably be less than estimated, and a mileage cost penalty
would normally be included. Mileage limitations can be set
to meet your requirements.
about insurance, taxes and licensing?
These costs are the lessee's responsibility and
can be included in the monthly lease rate or arranged for
and paid directly by the lessee.
are leased vehicles billed?
Normally per month
by invoice or automatic checking account deduction.
a lease be cancelled and the vehicle turned in prior to
expiration of the contract?
— however, all lease contracts have "premature
termination" provisions which determine any additional
What about service on leased vehicles?
Under a typical open- or closed-ended lease
contract, the company or individual lessee has the same
responsibilities as a purchaser, including full
responsibility for all non-warranty repairs and service on
the vehicles it leases.
does leasing differ from renting?
Units acquired by the day, week, or month are
normally considered rental vehicles and intended as
temporary replacement transportation. Units acquired for a
longer period (usually 6 months or more) are normally
considered leased vehicles.
Where are leased vehicles serviced?
Local dealer/lessors generally provide service at
their own dealerships.
What can be done with the car(s) and truck(s) we now own,
should we decide to lease?
Most leasing dealers/companies will buy them from
you or use them as trade-ins to reduce your lease
do companies offer lease vehicles to their employees rather
than pay mileage allowances for the use of personal
The following are the most significant reasons:
- It eliminates the
automobile as a prerequisite for employment, letting a
company hire the right person rather than the right car.
- It provides more
- It releases employees
from the burden of shopping, financing, and replacing
vehicles at their own expenses.
- It assures late-model,
dependable transportation which contributes to the
- It allows
standardization of equipment through control of the age
and type of vehicle used.
- It can become a highly
tangible fringe benefit, depending on company policy
- It reduces the
possibility of inadequate insurance coverage.