More and more companies are opting to outsource transport services; hence our objective is to meet this growing market need. We free them from the burden of vehicle ownership, maintenance and other allied costs hence allowing them to focus on their core business
â€¢ Dry operating lease Lessee rents the asset with insurance cost from a specialised lessor while maintenance is sub contracted by the lessee to the party preferred by the lessee.
â€¢ Wet operating lease Lessor rents out an asset to the lessee including all the costs thereof from the service providers, which includes, maintenance, insurance, vehicle replacement, tyre replacement, mileage options and any other requirement specified by the lessee.
â€¢ Buy back lease the lessor buys the lessee's existing fleet after valuation and leases back the same fleet to the lessee.
Benefits of leasing
- Effective monthly costs are lower than conventional hire purchase. This is because you are only paying for the part of the vehicle you use during the lease term.
- You pay a fixed cost monthly; hence, transport costs are forecast able making budgeting more easily due to the elimination of variable costs.
- Off balance sheet financing, as there is no capital outlay as in purchasing vehicles the company's liquidity ratios (improving your debt and equity ratio) are healthier and this saving in capital expediters can be deployed on the organizations core business.
- No depreciation costs as the assets are in the books of the lesser.
- No maintenance and headache of managing your fleet as the lease package includes the cost of full maintenance, licensing, taxes and insurance.
- New vehicles (improving image) and no headache of disposing vehicles, you simply return the vehicles after the lease period and have an option to go into another lease agreement with brand new vehicles.
- No losses of use as you are on the road 365 days a year, as replacement vehicles during servicing and accident repairs are provided.
- Taxation benefits, to the company as well as individual users, as the lease payment is tax deductible and the benefit tax charged to individual users works out to be lower.
- Leasing offers option of branding at reasonable cost thus reflecting the image of the lessee hence enhancing the advertisement and marketing aspects
Leasing - scope of cover
- Full maintenance â€“ Scheduled and Unscheduled
- Labour and parts
- Comprehensive insurance
- Replacement Vehicle
- Tyre replacements
- Battery replacements
- Alarm Anti theft system
- Free AA Membership & Countrywide service backup
The client can make additional requirements to the scope. We also assist our client on Body building, tracking/fleet
management system & branding. The additional services have a surcharge.
WHY ARE COMPANIES LEASING?
- Global best practice
- Savings on cash flow - More growth and dividends
- Improved ratio's
- Core business â€“ Doing away with the non â€“ core business
- Easy management â€“ Outsourcing
- Tracking & Fleet management
- Body building