Leasing vs. Reimbursement
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: Open-Ended Lease vs. Close-Ended Lease
Driver reimbursement generally represents great disadvantages to a company’s employee. The perk of being able to select any vehicle the driver wishes is soon outweighed by the increased costs, record keeping and the impact to his/her personal financial situation. It also offers the least amount of control by the employer over operating costs, safety, and reflection on the company.
Bergstrom Pioneer Leasing, One Neenah Center, Suite 600, PO Box 549, Neenah WI 54957-0549, Phone (920) 729-5151