For both small and large fleets, choosing the correct lease type requires consideration of costs, utilization, and remarketing scenarios.
Serving the small- to mid-size fleet market, 55 percent of Union Leasing’s portfolio is comprised of light- and medium-duty trucks. Recently, it acquired Express 4x4 Truck.
The move to put lease obligations on the balance sheet brings up questions on whether the change would affect a company’s ability to borrow money, its financial statements and the accounting of closed- and open-end leases.
The Financial Accounting Standards Board (FASB) has voted to move forward with a new standard that would require companies and organizations to include lease obligations on their balance sheets, a move that's being greeted with cautious optimism by fleet management companies.
Fleet managers are wise to read the entire lease agreement and familiarize themselves with the terms and conditions under which they will be doing business. For it is the business side that impacts the fleet manager most.
Choosing between the two types of commercial leases involves understanding your fleet driving patterns, your internal fleet management capabilities, and your appetite for risk.
Not only will the market share for the closed-end lease grow, but so will its impact on fleet. A desire for predictable budgeted payments and fewer surprises at resale has prompted a renewed interest in the closed-end lease.
Deciding whether to lease or own company-provided vehicles can seem a daunting task. Knowing the basic concepts helps.
The FASB and IASB have put a new leasing project on their agendas. The outcome will be the creation of one leasing standard applied worldwide. Is this the beginning of the end of off-balance sheet accounting for fleet leases?
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