Should I lease my vehicle fleet?

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Should I lease my vehicle fleet?

Should you lease your fleet vehicles or buy them? It’s the eternal question, and at some point, almost every fleet manager has thought about this. The decision never comes easy, and you should look at a number of factors from budget to size to goals. We can’t necessarily make the decision for you, and you will probably understand the intimate details of your fleet a little better than us, but at Pfaff Leasing, we can give you tools to help guide the decision. If you are thinking about leasing a fleet of vehicles for your business, then you have come to the right place. In this blog by Pfaff Leasing, we talk about some of the reasons why you should consider leasing a fleet of vehicles.  

Click here to begin browsing through our inventory of vehicles for lease at Pfaff Leasing. 

Typically, there are two types of leases

Leasing looks a lot like renting vehicles, but instead of only renting for a couple of days, leasing will last for up to a year and sometimes longer. Technically speaking, leasing pays for the use of the vehicles instead of the asset. You have two different kinds of leases.

Open-ended leases:

This lease begins with a minimum term of around one year. After that, you have the option to rent on a month-to-month basis. Towards the end of the agreement, you can sell the fleet vehicles and generate some extra profit. The sale takes place as a predetermined value, and the lessor could have to pay for the difference. If the sale is less than the asset value, you will have to make up the difference to the lessor.

Closed-ended leases:

A closed-end lease will have a fixed term where you make monthly payments. However, you cannot put wear and tear on the vehicle or go over a predetermined kilometer limit. If you do, you have to pay a penalty. With this one, you can’t sell the vehicle at the end of the leasing term. Typically the closed-end lease will cost less upfront while the open-end lease will cost more.

Preserve your business capital 

Leases have the wonderful benefit of keeping your monthly payments at a lower cost. The company also doesn’t have to dish out a hefty sum of cash to buy a new fleet vehicle. When you’re a startup company, that makes all the difference because you can put your money into advertising, products and more hard-pressing demands. You can also get newer and more advanced vehicles without having to worry that the price will spin out of control.

There are many reasons why you should consider leasing your fleet vehicle for your business. If you are looking to find a fleet of vehicles for your business operations, then we suggest that you contact Pfaff Leasing today.

Click here to find our contact information or speak with a representative.