The process of leasing vehicles in bulk by any business, organization or federal agencies is called Fleet Leasing. These companies have various leasing programs and services through which they provide businesses sourcing, maintenance and expanding the company’s automobile fleet. Vehicles commonly used through fleet leasing are taxicabs, public buses, pick-up vans, cargo vans and more. A lot of businesses use this service to deliver orders to consumers or to reach the clients.
Services provided by Fleet leasing companies:
- Buying new vehicles or replacing vehicles
- Registration of the vehicles with the concerned authorities
- Payment of the road tolls
- Maintaining the regulations of workplace safety and ensuring that the vehicles are functioning properly
- Taking care of the traffic breach notices
- Organizing and managing the process of new fuel cards with the suppliers and retrieving the cards that are outdated
- Ensuring that the vehicles are fit for usage and purpose
- Selling cars which have become obsolete.
Few reasons why companies fleet lease:
- Lease financing helps the lessee to access advanced equipment.
- The duration of the lease can be extended to match the functional span of the vehicle.
- Helps to improve the financial picture by freeing the working capital and sustaining the operating capital.
- Cost structure includes the installation, maintenance, and many more services.
- The lessee can upgrade and have additional equipment to fulfill the shifting needs.
In simple words Fleet management is a technique for monitoring, controlling and tracking of vehicles used in the business. Delivery services, taxicab companies, car rentals, public transport companies might fight find this method useful. It also helps to keep arecord of schedules and plan in the process of fleet leasing. For the purpose of tracking, GPS fleet management is ideal.
So, fleet leasing is a very efficient way of leasing automobiles and is cost effective as it helps to put the balance sheet in good shape and affects the working capital and operating capital positively.