Fleet Management - Different Types of Leases
Tuesday, 21st May 2013 at 10:05 am
Fleet management companies can assist your Not for Profit (NFP) organisation by optimising your fleet of vehicles – from purchasing, servicing, managing and disposal.
This ultimately frees up capital so you can invest in your organisation for future growth.
If your organisation runs its own fleet of vehicles to support its objectives, you will be aware how extremely capital and labour intensive it is. These are some of the reasons many organisations turn to fleet management organisations to minimise these costs, mitigate risks and achieve the cheapest whole of life cost solution.
Custom Fleet, part of GE Capital, has a dedicated focus aimed at the NFP sector and understands the challenges faced by NFP organisations. They offer fleet leasing solutions for passenger, light and heavy vehicles and will work with you to provide a tailored fleet leasing solution unique to your organisation’s needs.
Leasing a fleet of vehicles provides flexibility by making it easier to adapt your fleet as your organisational needs evolve. Custom Fleet prides themselves on their fleet experts being able to provide strategic recommendations, and the flexibility in their leasing options to ensure they can optimise fleets of all sizes:
1. Operating Lease – an operating lease offers peace of mind and budgeting with a set rental payment each month. At the end of the lease, as long as the vehicle is in a good condition and has been properly serviced and maintained, Custom Fleet accepts the residual value risk.
2. TRAC Lease – a TRAC (Terminal Rental Adjustment) Lease is perfect for organisations looking for flexibility and transparency. A TRAC Lease gives you flexibility of lease term; Capped Residual Value liability; no excess usage charges & maximum transparency on interest rate, residual value and other lease elements.
3. Finance Lease – with a Finance Lease the residual risk remains with the lessee. A Custom Fleet Finance Lease may suit businesses who wish to make an offer or buy the vehicle at the end of the lease. With Custom Fleet you can also add a range of maintenance services to assist with the smooth running of your fleet.
4. Sale and Leaseback – if you own your fleet vehicles, a Sale and Leaseback can free up capital for you to invest back into your organisation to help growth. Custom Fleet can buy your vehicles and lease them back to you via an Operating, Finance or TRAC Lease.A Sale and Leaseback program allows you to access the various services Custom Fleet provide and apply them to your entire fleet straight away, rather than over time as you work through replacing your owned vehicle fleet.
Novated Lease – this is a three-way agreement between an employee, the employer and Custom Fleet. It lets employers finance, and maintain a vehicle as part of their salary package. The employee leases the vehicle from Custom Fleet and they then pass on (novate) the obligations to the employer. They then deduct the lease payments directly from the employee’s pre-tax salary.
The way in which fleets are managed effectively is going to vary from organisation to organisation. Each needs to be fit for purpose, considering the functionality and requirements of the fleet. Custom Fleet has the flexibility in their product suite, combined with industry expertise and insight to ensure your fleet works on the road as well as on the Balance Sheet.
For more information visit http://www.customfleet.com.au/ or phone 1800 811 922.