When selecting a vehicle, companies should look at more than just financial considerations to fill their transportation needs. For long-term use, either by assigned drivers or pool use, companies have two basic choices: They can purchase their vehicles or lease them.
There are financial, tax, and other benefits to each option.
The financial analysis of the lease-versus-own dilemma is a comparison of the present value of the net after tax cash flows of both options. Since leasing involves payments made over a period of time, the flows must be compared using the true value of both options — purchasing and leasing.
When comparing purchasing and leasing, fleets should examine all aspects of each, including:
- Hidden savings with adopting the lowest lifecycles of fl eet vehicles.
- Vehicle pricing.
- Elimination of non-value added current process requirements.
- Associated savings with outsourcing opportunities.
- The improved service quality and lower costs to customers. These encompass both internal and external customer entities.
When it comes to leasing, there are a number of benefits that can be easily overlooked. This whitepaper will examine each of these often missed opportunities.
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