Leasing will save your fleet money
by Brian Holland, president and CFO, Fleet Advantage
A leasing solution provides flexibility to adapt to changing markets and business conditions, and allows for the addition or replacement of equipment prior to lease expiration. Specifically, short-term leases reduce operating costs and allow a fleet operation to take advantage of the continuous vehicle safety improvements, improved fuel economy, and lower maintenance costs. Fleets are seeing the operational savings of shorter life cycles enabled by leasing directly hitting their bottom line, as well as better driver retention, improved corporate image, and overall productivity.
In addition, the new lease-accounting standard instituted by The Financial Accounting Standards Board during 2015 will continue to favor leasing over debt. Under the new rules, all leases, including those used to acquire trucks (with few exceptions), must be shown on the balance sheet as a right-of-use asset and corresponding liability, which in most cases will be less than if the trucks were acquired using debt.
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