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.
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.
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.
There is generally no minimum or maximum number of vehicles that can be leased but this will depend on your company’s financial position.
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.
Any new vehicle that is offered for sale by a manufacturer approved dealer can be financed under an operating lease.
Fleetcare can buy back any current vehicles you have via a Sale & Leaseback agreement 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.
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.
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.
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.
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.
If you’re looking to protect your vehicle even more, we offer a range of additional vehicle protection options designed to enhance the safety and enjoyment of your vehicle. For a full list of options, click here.
Fleetcare will own the vehicle at the end of the operating lease term.