How to Choose Between Closed-end and Open-end Leasing
by admin on 11-29-2010 • Tags: Caldwell Leasing, closed-ended leases, Fleeet leasing, open-ended leases
Many lease holders find themselves confused by the options and programs available to them. A good fleet leasing company will be the experts in their field and will work with you to determine your best leasing option.
To start your lease, you must decide between a closed-end or open-end lease.
This decision will be based on your company’s business needs.
An open-ended lease allows your company to have all the benefits of leasing while keeping monthly payments to a minimum. This leaves your company with the flexibility to use cash flow for other areas of the business. At the end of your lease, you are left with options for your vehicles. You may chose to sell your vehicles when the market is favorable or buy vehicles that have performed well, have low mileage and have been maintained. Choosing an open-ended lease puts more decisions and management for your fleet on your company.
If you are interested in a fixed, no risk fleet program, then you will want to select a closed-end lease as your fleet option. Closed-end leasing makes managing your fleet and fleet budget easy. It eliminates price changes for the entire life of your lease, you won’t have to worry about mileage and you won’t assume any responsibility for the vehicle at the end of the lease. You, simply, make the monthly payments and at the end of the lease you walk away.
Before selecting your lease option, there are a few things to consider:
· You must understand how your company will utilize the fleet
· What level of risk you are comfortable with placing on your company for fleet costs and management
· How much you want to manage the fleet
Whichever option you decide on for your company, fleet leasing companies offer a number of additional services that take the worry out of your fleet and allow you to focus on your business. The experts in the fleet leasing field are just that, experts. Let them understand your needs and put together a program that will be successful.