Tax credits and federal grants continue to make hybridvehicles an appealing choice for some trucking applications. As interest grows,so do the opportunities for acquiring hybrid trucks. Take, for example, thelease options.
If a fleet has decided to include hybrids in its operations,it may want to lease these vehicles. In addition to OEM/dealer leases, theresome lease finance companies that not only offer, but also promote the leasingof hybrid electric vehicles.
Emerald Commercial Leasing (www.emeraldcommercialleasing.
com), points out that a diesel electric hybrid vehicle canget up to 40% better fuel economy than a regular diesel engine. In addition, incertain applications they qualify for a number of financial incentivesincluding up to $12,000 in federal tax savings.
Joe Dickman, owner of Emerald Commercial Leasing, says, “Asa finance lease company, we have tried to stay on the cutting edge and promotesolutions to our customers. As an example, one solution is an all-electricrefrigeration system we have been working on with Eaton to help refrigeratedtransport customers cut costs.”
Emerald Commercial Leasing has established relationshipswith all brands of chassis and equipment. Because of these relationships,Dickman says, the company is able to take advantage of its purchasing power.Because of the leasing company’s volume of business with most dealerships itallows the lease company to have special purchase and fleet pricing.
Alpha Equipment Leasing (www.alpha-equipment-leasing.
com) claims that 80% of today’s business owners areselecting leasing as the preferred method of financing hybrid commercial trucksthey need to operate their business. The company says that leasing helps fleetsretain much-needed capital and their bank line of credit for the day-to-dayoperations.
Typically, at the end of an equipment lease, fleets have theoption of simply returning the leased equipment. This enables them to get themost up-to-date technology for the new equipment being leased to replace theold equipment.
Traditionally, leasing has been a good way to acquire newequipment without negatively impacting a company’s balance sheet, and paymentsrelating to an off-balance sheet lease are typically fully tax deductible.
Mostbanks will require a significant down payment, usually 10% to 20% of the costof the equipment being purchased. Banks may look for additional collateral,large compensating balances in the fleet bank account, and may even placerestrictive lending covenants. Banks also want to analyze the past two to five years of business and personalfinancials. Leasing avoids these constraints with a simplified approval processand low to no financial documentation, allowing for faster use of theequipment.There are many equipment-leasing benefits. However, fleets shouldconsult with their tax advisor prior to making any final decisions.
