As 2020 unfolds, all sorts of market drivers are pointing to this being a very good time to be leasing and renting trucks and trailers. And the lessors of that equipment might argue that those same forces are making what they offer more valuable than ever to fleet operators.
“Choosing leasing is a great pathway” for fleets to manage technological change and other industry issues, such as driver retention, by making it easy to switch to shorter trade cycles, advises Brian Holland, president and CFO of Fleet Advantage, which provides equipment financing and business intelligence to fleet operators.
He points out that setting trade cycles “depends on a lot of factors, including fuel mileage, maintenance costs, and secondary value. We use an algorithm to determine the ‘tipping point’ for when it is cheaper to move to new equipment. Typically, it’s before 500,000 miles and usually reached in three to four years.”
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