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.

By Select Fleet Management Solution Providers