Leasing vs. Owning
While leasing offers many advantages for vehicle fleets, there is no one-size-fits-all answer. The best solution for your fleet could very well be a mix of leasing, owning and reimbursement.
Bergstrom Pioneer Leasing (BPL) looks at each vehicle on an individual basis to decide what will be in the best interest for your company. Regardless, if your fleet is utilizing driver reimbursement programs, company owned vehicles or looking at leasing, BPL has a full menu of fleet management services.
Leasing is an efficient and economical method of vehicle acquisition and fleet administration. It allows a company to preserve capital for expansion or research, to improve their cash flow, or for business improvements. It also provides a strong management and assessment tool for their fleet performance.
Many people mistakenly associate “leasing” for “renting” and assume that leasing is going to be expensive. They also don’t want to be left with nothing to show for it once the payments have been made.
In reality, with leasing you’re only making payments for the amount of the vehicle that is used and not the entire initial cost of the vehicle, resulting in lower monthly payments.
J. Paul Getty, found of Getty Oil Company and one of the world's first billionaires might have said it best when he stated, “If it appreciates buy it. If it depreciates lease it.”
> Next: Leasing Vs. Reimbursement
A company's ownership of its vehicle fleet can represent a substantial cash outlay while using up either company credit lines or cash reserves. It requires in-house purchasing, management and monitoring; all yielding to additional in-house costs in time, equipment and staffing. For those companies with this structure in place, we offer management services to assist in administration and effectiveness of the fleet.
Bergstrom Pioneer Leasing, One Neenah Center, Suite 600, PO Box 549, Neenah WI 54957-0549, Phone (920) 729-5151