If it's time to expand or upgrade your commercial vehicle fleet and you're nervous, it's okay. We understand. This is probably an exciting time for you, your business is expanding or improving, and you need to upgrade your existing commercial fleet. Don't let the idea of leasing sap your excitement or energy.
We have dealt with many types of customers. From those who are moving up from delivering products in their personal vehicle, to corporations who routinely lease hundreds of trucks at a time.
Leasing a commercial vehicle is not hard, and it's not much different from leasing a personal vehicle. Thousands of people lease commercial vehicles every year. At Wilmar, we make the whole process easy and smooth.
However, there are some things you should be aware of before you sign on the dotted line. So let's get into leasing commercial vehicles and how to make the process easy.
Your Benefits From Leasing A Commercial Vehicle
If you're not currently considering leasing commercial vehicles, and are reading this article only for information, place yourself in the position of somebody making the decision to lease a business vehicle for the first time. There are many decisions to be made.
You're at a fork in your company's road. You need to expand your fleet, but the question is should you lease or buy your vehicles? Let's discuss the advantages of leasing commercial vehicles:
- Leased vehicles usually have lower monthly payment versus vehicle that are purchased.
- By leasing a vehicle you enjoy the benefit of having a fixed interest rate versus having a floating interest rate.
- There are tax advantages to leasing a vehicle. For example, you can deduct the business costs of driving the vehicle. So, if your vehicle is 100% used for your business, all the costs of the vehicle could be tax deductible. Additionally, your lease payments are also tax-deductible. The key to taking advantage of these tax deductions is keeping accurate and detailed records. Also, it's necessary that more than 50% of the use of the vehicle is for business before you can take any business deductions.
- Another advantage of leasing a commercial vehicle is you will be able to get a more technologically advanced and safer truck through a lease than if you purchase one. A new truck costs far more money than leasing one. If you try to save money by buying an older truck, you won't be getting the latest maintenance and safety technology.
- New trucks makes it easier for you to recruit and retain qualified drivers.
- When it's time to replace the vehicle, you don't have to worry about selling it. With a leased vehicle, you take it back to the leasing company and close out the contract.
- Finally, by leasing your truck, the amount of money you pay will only be reflected as a leasing expense and not as a purchase. This allows your to remain more liquid on your balance sheets.
Ready? OK, Here Is How To Lease A Commercial Vehicle
- First, decide on the number of vehicles you'll need. Really give this some thought, you might think you need only one truck, but what will you do if it has to go in for maintenance? Or develop mechanical problems?. By using two vehicles, one of the trucks can be used to continue your supply chain. However, if all you can afford at this time is one vehicle, that's fine. At Wilmar, we handle fleets from 1 to 1000. There is nobody who is too big or small for our services.
- Next, decide on the type and size of the vehicles you'll want. You will also need to consider if you will need to obtain any special licensing for your drivers. If you have been using non-commercial vehicle to transport your goods, you will have to obtain trained and qualified drivers. Additionally, consider where you will store the vehicles when not in use.
- How much mileage will your trucks drive annually? You may want to consider paying for extended mileage beyond the normal mileage for the lease. In commercial leasing, you might be using what's called an open-end lease. In an open-end lease, there is no extra money for mileage, however you will pay the depreciation on the truck caused by the extra mileage.
- When you meet with the leasing company, ask what the drive off fees and the lease factor will be for each vehicle.
- Decide who will sign or who will be authorized to complete the lease. While you might consider your fleet manager or a local office manager appropriate, you want to make sure it will be somebody who is a long-term employee. Perhaps even an owner or principal of a company. Whomever you choose, it should include the person who did the research and initial contacts with the leasing company. This way there will be seamless information flow about contracts and other matters.
- Contact your insurance company and arrange for insurance on the vehicles.
- Finally, decide who will maintain the vehicle. Commercial trucks have stricter equipment requirements than personal vehicles. Maintenance log books must be maintained and maintenance must be completed on a regular basis. If you're expanding your current fleet size, will your current staffing be able to cover the extra vehicles?
These are a lot of considerations, but you are taking a big step, you want to make the right decisions.
Wilmar has all of your bases covered
Wilmar is a full-service commercial vehicle fleet leasing and maintenance company. We not only lease vehicles, we also help you maintain them and maintain the record books for any inspections.
We can do this regardless of the size of your vehicle fleet. All of our technicians are professionally trained, experienced, and receive ongoing professional training.
It's An Exciting Time When Companies Grow
If you are expanding your commercial fleet, or even starting your first one, congratulations! It means your business is growing, and your markets are expanding. Wait till you see the new trucks on your lot, then you'll really feel the electricity from your success!
If you have any questions please do not hesitate to contact us. We are the largest fleet leasing and maintenance company in the southeast United States. Wilmar handles fleet leasing, management, maintenance, fuel card service, and vehicle turn-in and disposal. There is nothing we can't handle.
