Leasing

LEASE VS COMPANY OWNED
LEASING		COMPANY OWNERSHIP
Leasing is an efficient and economical method of vehicle acquisition and fleet administration. It allows a company to preserve capital for expansion or research, to improve their cash flow or for business improvements. It also provides a strong management and assessment tool for their fleet performance.			A company's ownership of its vehicle fleet can represent a substantial cash outlay while using up either company credit lines or cash reserves. It requires inhouse purchasing, management and monitoring; all yielding to additional inhouse costs in time, equipment and staffing. For those companies with this structure in place, we offer management services to assist in administration and affectiveness of the fleet.

ADVANTAGES		ADVANTAGES
	Control over image and suitability of vehicle		Control over image and suitablity of vehicle
	Vehicle under manufacturer warranty majority of road life		Vehicle under manufacturer warranty majority of road life
	Maximizes company fleet costs		Depreciation available to company financials
	Paying only for actual vehicle value usage		Preferred under certain tax situations
	Purchasing power due to lessor's volume and association in auto industry
	Competitive funding rates warranted by company's financial strength; multiple financing options
	No upfront costs	DISADVANTAGES
	Sales tax on payment only where use/rental tax applies		Requires large initial cash outlay
	Predetermined pricing with discounts not always available to employee or company		Uses up credit lines or cash reserves
	Unrestricted choice of make and model		Increases company liabilities to assets
	Professional expertise in vehicle selection		Limits investment and/or research & development opportunities
	Lease experts managing and monitoring fleet effectiveness and efficiency		Paying first / using actual vehicle value later
	Vehicle maintenance monitored to maximize vehicle performance		Less purchasing power for small to midsize fleets
	Budgetable, predictable monthly cash flow		Limited vehicle vendor network
	Consolidated monthly billing		100% sales tax paid up front
	Lease-end vehicle values maximized due to options available for used vehicle disposal/remarketing		Generally no predetermined pricing; if so, generally vehicle line or supplier limited
	Off balance sheet transactions		No pattern to expenses for budgeting
			Need for vehicle purchasing and selling division
DISADAVANTAGES			No professional fleet management expertise
			Need for inhouse tracking and recordkeeping
	Exposure to fluctuations in used vehicle market		Increases inhouse costs and staffing
	Limited under certain tax situations		Tendencies to "overdrive" vehicle's practical roadlife and increasing operating expenses due to maintenance
	Liability exposure		Limited vehicle disposal options and values received

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