Have you been thinking about getting a Full Service Truck Lease and wondered if it’s the right option for you? Well, take a look at some of these facts as to why a Full Service Truck Lease might be just what you and your business need.
A Full Service Lease (FSL) gives customers fixed cost and predictability. A typical FSL consists of a fixed monthly charge and a variable charge (cost per mile) allowing the customer to know exactly how much they will be invoiced each and every month for the entirety of the lease. Being able to eliminate the unpredictable and expensive costs associated with ownership, is a large factor on why companies turn to FSL as an option for fleet acquisition. As you read further, we will discuss other areas where predictability and fixed cost come into play.
Why Own a Depreciable Asset?
When first looking at a FSL, companies often question the fact that at the end of the lease, the truck is turned back in to the FSL vendor and they have nothing to show for it. At the end of the lease, these trucks simply are not worth what people anticipate them to be. Also, people often forget about the maintenance dollars spent on the equipment each year. Every circumstance is unique and it is possible to have equity in the equipment after the first life cycle, but with just one catastrophic failure, companies can become upside down very quickly. One other item that is often overlooked is that trucks become obsolete with the ever changing and improving technology in the industry today. With an FSL being a closed end lease, it relieves you of the residual exposure and disposal costs that are associated with ownership.
Hidden Cost of Ownership
When companies analyze their cost of ownership, there are many items that are often forgotten about and swept under the table. Some of these items include tow bills, rental units, truck washing, administrative overhead, licensing, etc. Within the full service lease, these items can be included in the fixed monthly lease payments and are the responsibility of the FSL vendor. For example, one instance per year of a truck going down, needing a tow and needing a rental unit (plus repair cost) can get costly very quickly.
If a Full Service Truck Lease for a Peterbilt sounds like something that you are considering and would like more information, please reach out to your local JX Lease Sales Executive.
We also offer leasing for Hino Trucks, Kalmar Ottawa Terminal Tractors and Volvo trucks but only at select locations and in a limited fashion.
Author: Andrew Haenisch, Wisconsin Lease Sales Executive