- How do most companies get introduced to leasing?
- Does the size of my fleet make a difference in my decision to lease or buy?
- What are some of the financial advantages of leasing?
- When is leasing less expensive than owning?
- What are the expenses I need to consider in determining the true cost of ownership?
- Are there any other costs of ownership I should be aware of?
- How many miles am I allowed under a full service lease?
- Can you custom tailor the lease term to meet my needs? What is the typical lease period?
- Can we request specific makes and models of vehicles?
Q: How do most companies get introduced to leasing?
A: 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 are 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: Kris-Way leases to fleets of all different shapes and sizes. We have customers that lease over 100 vehicles and we also have customers that only have one truck in their operation. 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: Some advantages are fixed expenses for budgeting, increased working capital (improved financial ratios), and decreased management and overhead costs. Reduced downtime, increased fleet reliability, and access to modern technology and expertise are also benefits.
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 have strong maintenance programs, offers substitutes to reduce downtime, have purchasing and borrowing power, and specialize in fleet operations.
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, replacement vehicles, 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: 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: There is not set “cap” on miles under a Full Service Lease. Your lease term is based on the “useful mechanical life” of the vehicle. The more miles you anticipate, the shorter the term. An advantage of the Full Service Lease is the customer has no responsibility for residual value if they have met their mileage agreement.
Q: Can you custom tailor the lease term to meet my needs? What is the typical lease period?
A: Kris-Way will consult with you to find the correct vehicle specifications and the correct service program on the vehicle. In addition, we offer a menu of services the customer can choose from to meet their specific transportation needs. The lease period is generally determined by both the mileage and the type of operation the vehicles are to be utilized in.
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, its parts inventory will reflect this. Another type of vehicle may warrant a slightly higher mileage rate.