The leasing model is a significant financing source, allowing vehicle and equipment users the ability to use assets without using their cash or credit lines to purchase those assets. In fact, vehicle and equipment leasing is so prevalent that it provides hundreds of billions each year in assets to lessees, including tanker ships, commercial jets, high cost medical equipment and millions of automobiles.
There are many reasons why leasing is so popular across a broad spectrum of industries. In regard to vehicle leases, the major reasons are as follows:
It does not tie up cash or working capital credit lines.
Monthly payments are typically structured to reflect the anticipated decline in value of the unit over the term of the lease. If a unit is purchased with cash or debt, the entire cost of the unit must be paid for either up front or over the loan term; the purchaser doesn't recover the unused value until the unit is subsequently sold.
Manchester Leasing Services deals with the automobile/truck industry every day. This knowledge allows us to work with our clients to help select the best make, model and equipment to meet the job requirement as well as recommending makes/models for optimum value retention and therefore less cost.
Fleet leasing through Manchester Leasing Services can reduce overhead and hassle by providing valuable services such as:
Eliminating the time/hassle of shopping for or disposing of the unit.
Providing one monthly invoice for the entire fleet.
Tax reporting is simple and straight forward. The lease payment is expensed on a monthly basis, similar to an office lease payment.