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

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

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).

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.  

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. 

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