Commercial Vehicle Leasing Tips

Allan Levine

Allan Levine


For over 40 years I have worked with businesses and individuals in helping them understand lease financing. I’d liek to share some commercial vehicle leasing tips and insights as to why lease financing can be advantageous for a business. It can help you leverage your company’s capital. By not tying up cash or using credit lines to purchase vehicles, leasing allows you to pay for the portion of the vehicle you are using.

Benefits of Commercial Vehicle Leasing
•Improve cash flow
•Tax benefits
•Advantageous pricing and payment structure
•Vehicle leases can take advantage of incentives and rebates
•Lessor expertise in buying, selling and specification recommendations
•Reduced administrative time and costs
•Consolidated billing
•No down payment needed

Commercial Vehicle Leasing Facts
•Vehicle leasing comprises about 35% of the market for vehicles costing approximately $45,000 or less.
•And 60% of the market for vehicles costing in excess of $45,000.
•Leasing as a form of financing for business vehicles has been growing over the last 5 years.
•Open-end leases enable the lessee to participate in the end of lease settlement. Sometimes the term TRAC lease is used, meaning the lease has a Terminal Rental Adjustment Clause.
•With a closed-end lease, the lessee has no responsibility at lease end except for body damage, excess mileage or abusive wear and tear. This is also known as a “walk away” lease.
•Closed-end leases offer off balance sheet financing.
•For a vehicle loan to have the same payment as a lease, a large down payment would be required.

Madison Capital has helped 100’s of businesses reduce the total cost of operating their vehicle fleets by utilizing our 40 years of vehicle financing and fleet management experience. Contact us to explore what we can do for you.