Businesses with fleets of 5 to 5,000 work with Fleet Management Company (FMC) experts to save time and money. FMCs have proven strategies to preserve a fleet’s value, maximize resale values, drive significant cost savings, and improve risk management.
The key to a successful implementation of a fleet management program is communication. Change is never easy. In fact, many resist it. That is why it is important to communicate, communicate, communicate what it is that you are trying to accomplish and WHY.
Companies with vehicles throughout the United States can benefit from a centralized fleet management program. A nationwide fleet can be managed efficiently and effectively from one central location.
You CAN lease new or used vehicles. Leases pay for depreciation or the difference between the original purchase price and the value of the vehicle at the end of the lease.
Many companies, especially those in the trades, think they damage their vehicles too much to lease. This is completely untrue. Well-written fleet leases account for the value at the end of the lease.
Accountants who understand the difference between fleet leasing (or open-end leasing) and consumer leasing are tremendous advocates of leasing. Accountants who only understand consumer leasing (or closed-end leasing) are opponents of leasing.
Fleet leases are structured based on utilization and can be written based on 10,000 miles or 50,000 annually. Leasing allows business owners to pay for the portion of the vehicles they use.
There is an opportunity cost to everything.
Cash is king.
These two sayings go hand in hand.
Businesses with cash have the power to utilize cash for strategic projects, opportunities, and acquisitions.
True. Consumer leases through dealerships are typically three years.
Fleet leasing is NOT consumer leasing. Fleet leasing is a financial alternative with a built-in exit strategy. Fleet leases are typically three to five years and are customized based on how you intend to use the vehicles. At the end of the lease, companies have the option to buy the vehicle, extend the lease, or turn in the vehicle.
Dealerships are not the only option for acquiring vehicles especially if you are acquiring vehicles for fleet use. Professional leasing and fleet management companies (FMCs) offer an alternative to the dealership experiences.