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5 Benefits of Leasing with a Fleet Management Company vs. a Dealer

Posted by Wilmar, Inc.


You have realized that you need a fleet for your business. What next? The next thing is to decide whether to lease through a fleet management service or a dealer. However, you don't know which one you should choose.

Leasing allows you to pay only for the part of the vehicle used instead of the entire vehicle. There is also no major capital outlay needed when you lease your vehicles. If you opt for leasing, you can do so through a leasing company or a dealer. Here are the benefits you'll enjoy by using a fleet management company.  

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1. Variety of vehicles

There are no model limits when working with a fleet management company (FMC). If you need different vehicle types for your fleet, you can easily get them from the fleet management service. A fleet management company has volume purchasing power and will offer you a variety of vehicles to choose from. FMC is not limited by geographic demand and you can plan for a national or local fleet effortlessly. 

2. Vehicle customization

If you want to customize your vehicle fleet, it won't be a problem with an FMC. You can opt for multiple customizations if you want slight differences in your vehicles or customize your entire fleet. For instance, you can create one set of customizations for a group of technicians. You can also have a set of customizations with similar features.

3. Ease of transaction

Dealer leasing requires a separate contract for each vehicle. You'll deal with a lot of paperwork for every vehicle that you lease. The vehicles will also be billed separately. It may not be an issue when you are leasing one or two vehicles. However, if you want to have numerous vehicles on the road, the paperwork can be time-consuming.

When you lease your vehicle fleet using a fleet management company, you'll enjoy a streamlined process. Billing is convenient using fleet management. The company will include all your vehicle fleet on a single invoice.

Leasing through a fleet management company ensures that you have an invoice that you can reconcile monthly for the vehicle costs. When you lease from a dealer, you'll be dealing with different dealerships with multiple invoices to reconcile. You'll have to work hard to maintain relationships with the various dealerships. 

4. Lower costs

With commercial leases, you may only be required to make a month in advance deposit instead of a large down payment. With dealers, you may pay excess mileage charges of $.25 per mile or even more. Commercial leases are lower since they don't have excess mileage charges. A fleet management company is always looking to cover the vehicle depreciation and not the excess mileage charges.

Fleet management partners can also help you to negotiate discounts. When you buy vehicles from dealers, you'll miss out on the discounts. However, you may get discounts occasionally from a dealer. It won't be up to the value you would get when you partner with a fleet management company. 

5. Flexibility

If you are looking for flexibility, then you should not go for a dealer lease. A dealer lease has strict terms and fewer options when it comes to terms you can choose from. With the dealer lease, you can only get out of the contract when you pay the entire payment remaining.

Unlike dealer leasing, you'll enjoy flexibility with commercial leasing. Fleet management companies allow you to re-write your lease mid-term if the vehicle usage is different from what you had anticipated.

A fleet management company is an excellent choice for your business. It'll save you time, money, resources, and stress. When you use an FMC you'll have a trusted advisor whenever you need it. Running a business is not easy, and so is managing a fleet. When you choose the best option for your needs, it'll make things easier for you. If you are in need of fleet management, contact us.

unbiased recommendations for lease choice

Topics: Fleet Management, Vehicle Leasing, Misc


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