Q. Is an operating lease right for me?
A. An operating lease is an ideal solution if your business wants to reduce fleet administration, doesn’t want to carry the residual value risk of an asset and wants to have the most current models by continually upgrading your vehicles.
Q. Will an operating lease create more paperwork for me?
A. No. In fact, an operating lease will do the complete opposite! Because an operating lease includes most vehicle running and maintenance costs managed by Fleetcare in one monthly repayment, Fleetcare will manage your paperwork for you, freeing up your time to focus on your business.
Q. What's the difference between an operating lease and a finance lease?
A. The main difference between these finance types revolves around risk. The choice to use either finance method depends on your business requirements.
Risk – Future Value: Under an operating lease, Fleetcare determines a future value based on the term and km’s travelled. At lease end Fleetcare retains the ownership and carries all the risk on the vehicle’s value. Under a finance lease the Australian Tax Office has guidelines to determine the required residual value. This residual value then becomes the amount that you pay at the lease end, so you are taking the risk on the vehicle.
Risk – Running Costs: An operating lease can include costs such as servicing, registration renewal, and replacement tyres. These are based on the term and km’s and are included in the fixed rental – that is Fleetcare carries the risk. A finance lease does not include running costs in the rental but these would be recharged on a monthly basis when required.
Q. Is there a minimum number of vehicles for an operating lease?
A. There is generally no minimum or maximum number of vehicles that can be leased but this will depend on your company’s financial position.
Q. What's the difference between a fully maintained and a non-maintained operating lease?
A. A fully maintained operating lease rental includes vehicle servicing, registration renewal, replacement tyres, roadside assistance, e-tag Management, accident management, fuel-card management and reporting. Under a non-maintained operating lease all running costs are charged back to you on a monthly basis – the lease rental covers the financing of the vehicle only.
Q. What vehicles can I lease on an operating lease?
A. Any new vehicle that is offered for sale by a manufacturer approved dealer can be financed under an operating lease.
Q. Can I take out an operating lease on vehicles I already own?
A. Fleetcare can buy back any current vehicles you have via a Sale & Leaseback arrangement which is also a great way to free up capital. Once values and lease rentals are determined, payment will be made as per our agreed arrangements.
Q. Can Fleetcare source the vehicle?
A: Yes - Fleetcare purchases numerous vehicles on a weekly basis – we have a dedicated dealer network that we purchase through to ensure all discounts are passed onto you.
Q. What is the standard term for an operating lease?
A. An operating lease term can range anywhere from 12 and 60 months. Fleetcare recommend a 3 year term to ensure you maximise the vehicle warranty and end of term value.
Q. Am I able to purchase the vehicle at the end of the lease term?
A. Fleetcare will discuss end of lease options with you prior to the end of the contract – if you are interested in purchasing the financed vehicle, let us know so we can discuss the possibilities.
Q. Can I customise my vehicle with accessories or add-ons?
A. You can customise your vehicle any way that you like, as long as you let Fleetcare know what additional accessories or add-ons you want at the quote stage. This ensures that we can get the cheapest quote for you, which includes the pricing of the accessories and add-ons.
Q. Who will own the vehicle at the end of the lease?
A. Fleetcare will own the vehicle at the end of the lease.