Most fleet management services can help you with vehicle leasing. However, the options may be limited. For example, you may have to choose between an open-end lease and a closed-end lease agreement. For some companies, neither choice is the best option. That is the reason that a select few fleet leasing companies offer open calculation leasing plans. Here are how they work and the benefits they have to offer.
What’s the Difference?
An open-end lease may be for as short as twelve months. This gives the company time to assess the vehicles and the service they have provided. Although there are no penalties, the lessee is responsible for vehicle depreciation and must assume this risk factor. For example, if the vehicles are worth less than the lessor sells them for, the lessee must make up the difference.
With closed-end leases, the fleet service companies (also called the lessor) assume vehicle depreciation risks. If the vehicles sell for less at the end of the lease term, the lessor must take the loss. These leases usually cost more because the lessee assumes no risk and can buy the vehicles after the lease expires.
With both open and closed-end leases, it can be difficult to figure all the costs ahead of time. There are many variables to consider, and an open-calculation lease helps companies predict their annual costs, so budgeting is easy, and there are no surprises.
With open-calculation, all your costs are estimated ahead of time so that you can budget for them. Fleet service companies work with you to determine what your costs will be. They can bill you monthly, so you don’t have t worry about things like the used car market at the end of the lease. Each lease is different and customized to the needs of the company. This is a good strategy for controlling your fleet costs.
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