operating lease by fleetcare

Fleetcare Operating Lease

What is an operating lease?

An operating lease is an easy and cost effective way of financing your company’s vehicles. It’s a fully integrated, tax deductible, off-balance sheet leasing option that’s like a long-term car rental. The two key benefits of an operating lease is that you carry no residual risk and can combine most vehicle running costs into one smooth, monthly payment.

Fleetcare owns the vehicle and provides you with exclusive use for one to five years in return for lease rental payments. At the end of the operating lease, you simply return the car back to Fleetcare.

Why choose an operating lease?

It’s ‘off the balance sheet’

This type of financing doesn’t appear on your balance sheet, giving your business scope to improve performance ratios, such as return on assets, while preserving your company’s borrowing capacity.

It’s tax deductable

Leasing payments excluding the GST portion are usually tax deductible when the vehicle is used for business purposes, helping your bottom line. GST on monthly payments is claimed through your business activity statement (BAS) submission.

Eliminate residual and asset risk

With an operating lease, Fleetcare carries the risk of the residual value and vehicle disposal. At the end of the lease, you simply return the vehicle with no further obligations and upgrade to the latest model. There’s no outflow of cash reserves to buy assets, which will only depreciate, and the vehicles can be used for short or long periods of time, with no complications of residuals.

One fixed monthly payment

One fixed monthly maintenance and lease payment benefits your cash flow and makes budget forecasting more accurate, as well as protecting you against interest rate fluctuations. You’ll be able to accurately budget for the total costs associated with running your fleet. The monthly payment is delivered in a single invoice, making payment easy to manage.

Reduced administration

An operating lease includes most vehicle running and maintenance costs, including servicing, registration/third party insurance, replacement tyres, roadside assistance, lease reporting and fines management, within a set monthly repayment. This can assist in your business cash flow, as you have flattened vehicle running costs that are known in advance.

Fleetcare can also supply and manage your fuel cards, e-tags and insurance, which are invoiced on a monthly basis as used.

Get in touch to see if an operating lease will work for your fleet.

 
 
 
 
 

Access working capital

Monthly repayments are spread over time so that you can keep your cash reserves for more effective use and maximise your key business performance indicators. You can also free up your company’s capital and internal resources to invest in your business, while Fleetcare takes care of your vehicles.

No deposit vehicle finance

100% of the vehicles cost is funded by Fleetcare. This means there is no initial deposit or outlay for your business.

Keep your fleet up to date

In our ever-changing world, vehicles are constantly being improved across all areas ranging from performance to safety. The ability to have the most current models can often be your competitive advantage.

operating lease compared to traditional methods

The operating lease process

Step 1. Fleet assessment:

Step 2. Quoting & contracts:

Step 3. Vehicle Delivery:

Step 4. Ongoing Management:

Step 5. End of lease disposal and upgrade:

Whole of life vehicle management

Operating lease FAQ

Q. Is an operating lease right for me?

Q. Will an operating lease create more paperwork for me?

Q. What’s the difference between an operating lease and a finance lease?

Q. How many vehicles can I take out an operating lease on?

Q. What’s the difference between a fully maintained and a non-maintained operating lease?

Q. What vehicles can I lease on an operating lease?

Q. Can I take out an operating lease on vehicles that I already own?

Q: Can Fleetcare source my vehicle?

Q. How long are operating lease terms?

Q. Who will own the vehicle at the end of the lease?

Q. Am I able to purchase the vehicle at the end of the lease term if I wanted to?

Q. Can I customise my vehicle with additional accessories and add-ons?