When you lease trucks for your fleet you may be offered what seems like a very attractive program that covers your lease payment as well as your maintenance for one price. This option is called a full-service lease. It is a conventional lease plus a maintenance agreement blended together and inseparable.
With the economy growing and interest rates rising, business leasing has become a hot topic. Companies are realizing the savings gained through leasing. As a result adoption rates are on the rise. Here are the 10 ways a Fleet Management Company (FMC) can help companies realize real savings through vehicle leasing.
We all have a friend or several who had a bad experience leasing. It happens constantly. They go to a dealership looking for a vehicle. They consider leasing at some point. They are given the choice of $800 per month for the vehicle they want if they buy.
Leasing vehicle fleets effectively and efficiently is simple if you follow five key leasing strategies.
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.
With the economy growing and interest rates rising, business leasing has become a hot topic. In fact, almost 30% of new vehicle acquisitions are leased.
Part 1 covered vehicle qualification for sales tax exemption using a transportation company.
Next, we will discuss how to establish a transportation company and what’s required on an ongoing basis to operate a transportation company.
Does your fleet qualify as a transportation company? Save on sales tax.
Many states’ sales tax laws (including Wisconsin) exempt companies from paying sales tax on vehicles, leases, and maintenance if they use their own fleet of trucks to deliver goods to their customers. Exemptions are statutory, not loopholes, and are closely regulated but can save companies significant costs. In order to take advantage of this exemption, a company needs to create a transportation company.