FAQ

Frequently Asked Questions

Often times the decision to lease versus buying can be a difficult one. Listed below are some typical questions asked by someone considering this decision.

A good way to introduce you to our services is through our Commercial Truck Rental Department. We welcome you to familiarize yourself with our company and capabilities by renting one of our vehicles. We care confident that you will be pleased with our service.

Q. Does the size of my fleet make a difference in my decision to lease or buy?

A. Fleet size does not matter when making that decision. Often, the companies with the smallest fleets are the ones to benefit most because of the many requirements involved in maintaining a fleet. Things like tax reporting and driver training.

One thing to consider is the urgency of your deliveries. When your business must deliver on time it helps having timely vehicle access and having a top flight partner for your transportation operation.

Q. What are some of the financial advantages of leasing?

A. 100 percent of your lease payments can be written off as a transportation expense.

Other advantages are level lease payment, increased working capital, and decreased management and overhead costs.

Q. When is leasing less expensive than owning?

A. When a customer is not prepared to operationally handle a fleet - where it must make a major investment in a shop, equipment, fuel tanks, and the facilities needed to comply with environmental regulations- then leasing is far less expensive than ownership.

Also, keep in mind that leasing companies work proactively to prevent repairs, thereby minimizing repair costs. We can save you money on maintenance costs. Also remember that under a full-service lease program the customer is no longer responsible. Management time, unexpected repairs, and premature parts failures fall on the leasing company.

Q. What are the expenses I need to consider in determining the true cost of ownership?

A. You must consider your total transportation costs. Basic expenses such as vehicle acquisition costs, interest costs, maintenance, fuel, insurance, road service, federal, state, and legal costs, as well as administrative costs must be considered.

Administrative costs include selecting trucks and equipment, scheduling maintenance intervals, selecting reliable repair shops, auditing repair bills, accounting expenses, and accident investigation.

Q. Are there any other costs of ownership I should be aware of?

A. Yes! There is the "cost of money" that is tied up in the trucks. This money could be used elsewhere in your business. Leasing also helps you improve your cash flow and allows you to better budget for the future. There is also the cost of extra equipment to replace disabled vehicles or to meet seasonal needs, driver overtime due to equipment breakdowns, and customer dissatisfaction due to late deliveries caused by breakdowns.

Q. How many miles am I allowed under a full service lease?

A. Your mileage is unlimited. Your rate is based upon your anticipated annual miles which we would estimate with you.

Q. Can you custom tailor the lease term to meet my needs? What is the typical lease period?

A. The lease period is generally determined by both the mileage and the type of operation the vehicles are going to run. We can tailor the program to fit your needs.

Q. Can we request specific makes and models of vehicles?

A. Absolutely. One thing to take into account is that if a leasing company typically runs one or two makes of vehicles, it parts inventory will reflect this. And another type of vehicle may warrant a slightly higher mileage rate.