A Strategic Lease vs. Purchase Hybrid Solution Can Help Optimize Your Fleet
For many organizations, there has always been a perceived fear of leasing; a myth that the company would end up paying more in terms of total cost of ownership as compared to owning a vehicle outright. Today, advanced analytics is helping change that perception by transforming fleet data into insight that highlights the true total cost of ownership for each acquisition scenario. When that data reveals the actual cost of ownership, leasing often becomes an attractive option.
Leasing, purchasing and financing are all viable options when it comes to acquiring fleet vehicles but it is important to remember, there’s no “one-size-fits-all” strategy. And in many scenarios, a hybrid solution comprised of both purchasing and leasing vehicles can provide significant benefits for most organizations. In a recent Utility Fleet Professional article, ARI’s Charlie Guthro shared his insight on the lease versus purchase decision and discussed some of the latest market trends.
In the story, which examines some of the factors to consider and how an organization may benefit from a strategic leasing solution, Charlie explains that many fleets have traditionally looked at leasing as an all-or-nothing option but notes the conversation is beginning to shift to a more application-specific approach.
Charlie says, “We’re starting to see more utility companies looking at leasing and saying, ‘We might not lease our entire fleet. But we certainly see the potential opportunity to look at our most critical units – the power-line units, the units that are out there keeping the infrastructure rolling.’ The idea is that if we’re going to have constraints on capital, we’re going to need to, at least, consider leasing because we can’t allow the reliability, the downtime and the critical impacts of asset management to be impacted by the slowdown we see in capital investment.”
Visit Utility Fleet Professional to read the entire article and learn more about how ARI’s flexible funding options help you align your fleet strategy with your company’s financial goals.