Saving capital expenses through short-term leasing

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Saving Capital Expenses Through Short-Term Leasing
A fleet’s size isn’t static. In fact, a recent survey* of corporate and government fleet
managers shows that more than a quarter of respondents (27%) need vehicles to fulfill
short-term needs like special events, seasonal activities, and contract or project fulfillment.
As the demand for fleet vehicles fluctuates, fleet managers must find a way to fill in the
gaps. Forty-eight percent of respondents said they rented units to fulfill their temporary
vehicle needs. However, this presents a problem, as rentals can often become pricey fast,
and rental companies aren’t likely to provide additional services like fleet maintenance,
special equipment or upfitting that leasing companies can offer. Short-term leasing gives
fleets an economical alternative.
What is Short-Term Leasing?
Short-term leasing provides fleets vehicles for anywhere from two to twelve month lease
terms, allowing them to fulfill their vehicle needs without incurring capital expenses for
vehicles that will eventually be underutilized. A wide variety of fleets have benefited from
short-term leasing, including those belonging to corporations, non-profit organizations,
government agencies, and companies in the entertainment and tourism industries. Any
fleet with temporary seasonal vehicle needs can accommodate them through short-term
leasing, allowing them to strategically expand and contract based on demand.
A wide variety of fleets have benefited from short-term
leasing, including those belonging to corporations, non-profit
organizations, government agencies, and companies in the
entertainment and tourism industries.

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Saving Capital Expenses Through Short-Term Leasing
What Short-Term Leasing Should Offer
Short-Term leasing is designed to offer fleet flexibility. As such, a good short-term leasing
program should provide flexibility in its terms. Fleet managers should look for the following
in their leasing company:
• Duration — Fleets should be able to lease a vehicle for as little as 2 months to
as long as 12.
• Quantity — Fleets should be able to lease any number of vehicles at a time,
whether 1 or 100.
• Variable Mileage — Pricing should be based on mileage needs, whether
high or low.
• Variety of Vehicles — There should be no limitation on the type of vehicles
that can be leased, whether domestic or foreign, cars, trucks or SUVs.
Some companies also offer upfitting solutions.
• Nationwide Network — A leasing company should have a nationwide
network of dealers so that delivery time is minimized.
• Experienced staff — The short-term leasing company’s staff should be able
to help formulate a customized option that fits a fleet’s needs and budget.
• Maintenance and Insurance Options

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Saving Capital Expenses Through Short-Term Leasing
Group Transportation
In addition to providing cars, trucks, and SUVs, some leasing companies also offer short-
term leases for multi-passenger vans and buses. Multi-passenger vehicles offer greater
benefits than do traditional group transportation solutions like charter buses, which can
be expensive, and smaller vehicles, which make it difficult to manage multiple drivers.
Multi-passenger vans and buses do not require special commercial driver licenses, but the
models leased should meet the highest federal safety standards. Fleet managers can also
opt for drivers to complete defensive driver training courses, a service provided by leasing
companies to help reduce a company’s risks on the road.
Benefits of Short-Term Leasing
Short-term leasing offers fleets the ability to expand a fleet based on temporary needs,
without increasing capital expenses. As fleets need fill-in vehicles, they can keep utilization
up and costs down, while meeting all of their fleet needs. Fleets can also build on the
momentum of their leasing investment through buyout options and purchase credit programs.
Rely on the Experts
A leasing company should be able to help a fleet find the right vehicles, leasing options,
and pricing package to meet a fleet’s exact needs. Finding the right partner can result in
a higher performing fleet, no matter the demand.
* October 2009 Short-Term Leasing Survey Conducted by Merchants Leasing and Bobit Business Media.

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