A fully maintained operating lease is similar to a long-term rental. It is a very cost effective, risk free and convenient way of operating vehicles in a company.

The key benefits include: –

  • Ability to take advantage of our purchasing strengths.
  • Fixed monthly installments for ease of budgeting on the whole life of the vehicle
  • Flexible terms from 12 months up to 60 months for cars and specific commercial vehicles
  • Pricing based on length of rental term
  • Allowable tax expense
  • Lease available for both new or used vehicles
  • Road tax, insurance,government tax,maintenance and replacement for vehicle fully inclusive in the rate
  • Ease of disposal
  • Hassle free management of your company vehicles.

This is one of the areas in which you can benefit significantly from a lease arrangement.

The major risks of vehicle operation are:

  • Initial purchase quality and safety issues
  • On going repair and maintenance – servicing, mechanical repairs, breakdowns, warranty claims, trouble shooting and safety consideration.
  • Vehicle usage – monitoring and control thereof, effect of over utilization, impact on resale values.
  • The future impacts in the vehicle industry?
  • Residual risks (anticipated value of vehicle upon disposal)

Many issues impact on determining vehicle policy. Hawk Fleet Lease offers experience and impartiality in helping decide what will best suit your requirements.

OWNERSHIP LEASE
Buy price unqualified
Risk on disposal
Nett book value = Market value
Uncertainty on running cost
Can involve a lot of time and administration
High capital expenditure
Ultimate ownership
No added value
Less tax efficient
Limited choice of vehicle
No replacement on breakdown vehicles
Best buy price
No disposal risk
No large cash outlay
Full maintenance included
Minimal time involvement
Improves cash flow and profitability
Don’t own what depreciates
Fuel card and insurance options
Tax efficient
More choices of vehicle with limited resources required
Zero downtime on usage
Replacement vehicle
    • Cost – net purchase price, running costs and resale expectations.
    • What is the vehicle to be used for? – Sales,carriage of goods, management, high or low distances.
    • What do similar industries (competitors) do?
    • How to introduce change.
    • Know when and how to act if market conditions change.
    • What is happening in the vehicle industry that will have an impact now or later
    • Low cash outflow is required to lease vehicles as compared to the high capital expenditure in acquiring own vehicles
    • More efficient cash flow management resulting in improvements to your liquidity.
    • Funds available for capital expenditure could be redeployed as working capital to generate higher revenue
    • More efficiency in capital employed

Think of the number of processes and people involved in the running of your fleet of vehicles:

    • Initial purchase-vehicle sourcing, order forms, payment, vehicle registration details
    • Ongoing – registration, servicing (making it happen) payment of maintenance costs, collation of costs, reporting thereof, how to benchmark, Road Tax, Insurance renewals, Claims for accident repairs.
    • Vehicle sale – comparing to similar assets, confidence in methodology.
    • If your systems are manual or automated – it still requires substantial investment in time and funds to ensure you can get the best out of your fleet and that management can receive meaningful exception reports. Hawk Fleet lease does this on your behalf ? you simply contract us to do so under your lease or fleet management arrangements.
    • Vehicles are our business – we invest in the best systems and people to manage this cost effectively for our clients.
    • By utilizing a fuel card(s) you can retain total flexibility and benefit from incorporating the fuel data and invoicing into your monthly reports
    • Having total snap-shot of all your vehicles related expenses as managed by Hawk Fleet lease is a significant time saver and a great management tool.
      Should you wish to consider including a fuel card within your arrangement you will benefit from significant savings on fuel purchases, as well as the comprehensive centralized billing/ reporting as mentioned above.
    • Achieving pricing benefits is not too difficult – it is the activity levels, consistency and the ability to measure the effects that are the real challenges.
    • Unless you are constantly in the market as an impartial ‘buyer’ this is almost impossible to achieve. There are also future influences that need to be acted upon from time to time (i.e. imports, tariffs, exchange rates, taxes etc).
    • The ability to monitor,record and compare a wide range of costs is critical in achieving true savings. Hawk Fleet lease has the volume, systems and resources needed to do this successfully.
      If you are interested in comparing these types of costs, you should to contact us

Hawk Fleet Lease can purchase qualifying vehicles and mobile assets currently owned by you and lease these back under our operating lease arrangement. Even with a few vehicles you may be able to raise a significant amount of cash and reduce your costs. (Purchase subject to vehicle age)

You benefit from an immediate cash inflow from on sale of your current fleet of company vehicles.

Long Term Lease Estimate
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