Fleet Partners

If you have a cash surplus and are debt-free, you’re in a great position.  But if you own you also have the associated residual value risk which means you may be missing out on opportunities to be even more profitable.

Funding vehicles and other assets can tie up a significant portion of your available credit facilities.  The best use of an overdraft may be for day-to-day transactions (such as buying stock which is able to generate profit), whilst assets should be funded separately. 

There are a number of benefits to this approach:

• Interest costs and charges attributable to overdrafts are overall far more expensive than medium term financing
• Selling an existing fleet and leasing it back gives you an immediate cash injection, frees your credit facilities for growth activities or activities that will generate far better returns on capital.  FBT exposure is also potentially reduced 
• When matched with the discounted initial cost and the competitive finance rate, an operating lease is often the most cost-effective means of funding available.

Since vehicle ownership rests with the leasing company, operating leases don't show on your balance sheet.  Lease payments are treated as an expense, making your vehicles simply a cost of running the business rather than a depreciating asset.

You may have good reasons for removing the vehicles from the balance sheet (such as improving the gearing level that you disclose, or to enhance your overall business performance ratios). 

Vehicles and equipment, light and heavy, depreciate faster than most other forms of investment.  Issues such as model changes can accelerate this even further.  Volatility in the second hand market can make achieving an anticipated sale price very difficult.  This can all have an adverse impact on profitability.

A lease from FleetPartners gives you all the benefits of operating vehicles without the costs, risks and responsibilities that ownership demands.  The capital you once spent on buying vehicles can now be invested in more productive assets.

Yes, FleetPartners can lease anyone a vehicle under an operating lease.

FleetPartners can provide you with precise comparisons that show that leasing your next vehicle may give you significant discounted cashflow savings in many instances.  We do however recommend you discuss your situation with your Accountant or an independent tax adviser.

FleetPartners provide all makes and models of new vehicles and selected near new models – cars (including wagons), light commercial and heavy commercial vehicles as well as trailers and other selected items of heavy equipment.

There is a range of lease terms available.  Passenger vehicle leases commonly range from 12 months to 36 months.  Heavy commercial vehicle leases generally range from 36 to 120 months.

You can specify the approximate required kilometre distance to be travelled during the term of the lease or ‘hours used’ in the case of some trucks and all heavy plant.  This figure is factored in to help determine the lease rate. Should your usage change during the term of the lease, we will reflect this in a change to the lease rate.

This varies with the type of lease, but most would exclude fuel, insurance, damage and road user charges.  For heavy commercial vehicles, glass and tyres (unless specifically included) are also excluded.
FleetPartners will automatically send you your annual registration for the vehicle.  It is your responsibility to ensure you are driving a vehicle with a current WOF.  FleetPartners recommends you get your WOF from the supplier or call into an approved LTSA testing station.