A closed fleet lease is similar to a consumer lease in that the residual value, term and mileage limit are predetermined. In an indefinite lease, the renter assumes responsibility for the actual market value of the vehicle at the end of the term; therefore, there are no mileage or wear and tear charges. A fleet lease is an agreement between a company and the fleet owner. The company pays to use the fleet of vehicles for a specified period of time.
It's actually quite similar to renting a passenger car as a private citizen. For many companies, the right decision is to lease vehicles because they are usually well maintained by the owner company. It's usually much cheaper to lease vehicles than to buy them. When you arrange a fleet lease, you'll pay for the use of those vehicles for an agreed period.
Flexibility with the number and type of vehicles you own is priceless. Whether it's the need to scale up or down quickly, leasing provides this flexibility. Let's say you need to reduce your fleet by 10 vehicles. If you own these vehicles, that's not going to happen quickly.
However, if you rent those 10 vehicles, the downsizing process becomes much easier. Perhaps the biggest advantage of signing a long-term, closed-fleet vehicle lease is that it doesn't involve TRAC. Element has flexible leasing and financing options for all assets in its fleet, including cars and light vehicles, medium and heavy trucks, and material handling equipment. With most fleet lease agreements, you'll receive not only fleet vehicles for use, but also maintenance, repair, regulatory compliance and fleet management services.
You can count on us to help you achieve the goals you've set for your company, one fleet of vehicles at a time. An important part of long-term efficiency in managing your fleet is the initial decision to lease or own the vehicles in your fleet. Fleet vehicles can also be large trucks used to transport goods locally or between states. There are only two main types of fleet leasing that are generally available to companies that want to purchase vehicles.
A fleet vehicle is one that is owned or leased by a company and is often used by employees in the performance of their work tasks. Another important advantage of leasing fleet vehicles is that you are not required to maintain those vehicles. Most organizations that use fleet vehicles own their own, but that doesn't mean it's the right choice for all companies. The reasons they cite are that the vehicles in the fleet are generally well maintained, the leasing company manages maintenance and repairs, and leasing fleets is less expensive than purchasing them.
Initial costs are significantly lower and may include maintenance, repairs and fleet management. Depending on the size of your fleet, you may need to have a fleet manager supervise it. Similarly, a fleet of late-model vehicles also looks more professional and gives your fleet a fresh look.