Connect with us
traffic-generic

Heavy-duty

Report: Advantages of unbundled vs. full-service leases for HD truck equipment

Advertisement

David Sickels is the Associate Editor of Tire Review and Fleet Equipment magazines. He has a history of working in the media, marketing and automotive industries in both print and online.

Fleet Advantage has released a new report, “How Unbundling Your Full-Service Lease Can Save You Millions.” The company says the report illustrates the organizational flexibility and financial gains associated with an unbundled lease agreement compared with fleets that use a full-service lease (FSL).

Advertisement

The principal difference between an FSL and an unbundled lease is that FSL is not transparent to the customer, Fleet Advantage says. In an FSL agreement, fleets essentially hand over all decision-making on fuel and maintenance & repair (M&R) costs to their lease provider, instead only focusing on a “bundled” monthly payment. 

In an unbundled lease agreement, Fleet Advantage says fleets have greater flexibility on these individual costs, but also the freedom to upgrade and scale through flexible leasing. A recent industry survey showed that more than a quarter of fleets (27%) had to downsize their total number of trucks due to COVID-19 economic pressures, the company says.  

Advertisement

The report also addresses that M&R is “front loaded” in an FSL. Companies will pay a minimum of 7 cents per mile in year one versus 2 cents per mile when unbundling, Fleet Advantage says. For fleets sensitive to their bottom line, it is not ideal to pay 7-plus cents per mile in year one when the national average is two cents, and the truck is covered under warranty for at least two years.

Click here to download the report. 

Advertisement

POPULAR POSTS

Sponsored Content

The hidden key to sustainable last-mile operations

East-Penn-Battery-Video-WEB East-Penn-Battery-Video-WEB

Sponsored Content

New East Penn truck battery video takes a closer look at trucking conditions

Sponsored Content

Why is fleet image so important?

Sponsored Content

Boosting efficiency and safety on every route

Connect
Fleet Equipment Magazine