More and more large fleet accounts and corporate healthcare conglomerates are making the switch to leasing programs. Can this work for your company? Like any big decision, weighing the pros and cons is an effective way to start.
With a leasing program, you’ll be alleviated of all the major concerns of vehicle breakdowns- most leases are structured to coincide with the warranty on the bus. This means that budgeting for potentially costly bus repairs and updates to the vehicle wouldn’t be necessary.
Scared to lease because of the number of miles driven yearly? With TESCO, you don’t have to worry about mileage; we offer leases for any amount of mileage, ranging from as little as 8,000 miles a year to up to 35,000 miles per year.
Another advantage to utilizing the leasing program over purchasing is the very small (if any) up front cost. You can plan how much per month you can budget towards your lease without having to worry about a down payment.
Flexibility. Leases are creatively and flexibly tailored for different facilities depending on their individual needs. For example, a healthcare corporation has a facility in Atlanta that operates the bus around 15,000 miles per year, where their facility in Orlando uses it just 10,000 miles per year. The monthly payment on the 10,000 to 15,000 miles per year may not seem substantial, but it adds up and saves money over the long haul.
Want your fleet coordinator to focus on other tasks rather than getting rid of old vehicles? With leasing, you will never have to worry about re-selling or disposing of your old fleet.
One hidden benefit of leasing is the tax advantages you will experience. Leasing new in comparison to buying new, you only pay the sales tax on the monthly payments instead of the entire vehicle. For a 3-year lease, you would only pay roughly 50% of the sales tax on the vehicle; for a fleet of 15-20 buses, this can add up to a huge cost savings.
Many times, people buy buses to “stay within their budget”, but they don’t factor in any of the purchase risk of a used vehicle (which include repairs and yearly upgrades needed to keep the bus functioning legally and properly). Don’t make this mistake- use leasing to increase your purchasing power and limit potential cost by always operating a new vehicle under warranty.
Do you have more questions on TESCO’s leasing program? Call your TESCO sales rep at 800.227.3572 for more information today!