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Archive of posts published in the category: Leasing
May
3

Vehicle leasing – Wikipedia

Vehicle leasing or car leasing is the leasing (or the use) of a motor vehicle for a fixed period of time at an agreed amount of money for the lease. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay. The key difference in a lease is that after the primary term (usually 2, 3 or 4 years) the vehicle has to either be returned to the leasing company or purchased for the residual value.

Rationale[edit]

Vehicle leasing offers advantages to both buyers and sellers. For the buyer, lease payments will usually be lower than payments on a car loan would be. Any sales tax is due only on each monthly payment, rather than immediately on the entire purchase price as in the case of a loan. Some consumers may prefer leasing as it allows them to simply return a car and select a new model when the lease expires, allowing a consumer to drive a new vehicle every few years without the responsibility of selling the old vehicle, or possible repair costs after expiry of the manufacturer’s warranty. A lessee does not have to worry about the future value of the vehicle, while a vehicle owner does. For a business lessor there are tax advantages to be considered.

For the seller, leasing generates income from a vehicle the seller (or manufacturing corporation) still owns and will be able to lease again or sell through vehicle remarketing once the original (or primary) lease has expired. As consumers will typically use a leased vehicle for a shorter period of time than one they buy outright, leasing may generate repeat customers more quickly, which may fit into various aspects of a dealer’s business model.

Market penetration[edit]

Leasing’s average retail market penetration rate in the United States for new passenger vehicles reached an all-time record high of 26.5% in February 2014.[1] This represents a recovery from a severe drop during the financial crisis of 2007–08. As of 2016, leasing accounted for about 25 percent of total vehicle sales or 31 percent retail sales in the United States.[2]

The prevalence of leasing in the United States for GM, Ford and Chrysler have been rising close to the industry norm since reaching low single digits in 2009, but still lower than BMW and Mercedes-Benz.[3]

Lease agreement[edit]

Lease agreements typically stipulate an early termination fee and limit the number of miles a lessee can drive (for passenger cars, a common number is 10,000 miles per annum though the amount can be stipulated by the customer and can be 12,000 to 15,000 miles per year). If the mileage allowance is exceeded, fees may apply. Dealers will typically allow a lessee to negotiate a higher mileage allowance, for a higher lease payment. Lease agreements usually specify how much wear

Apr
4

Vehicle Leasing from Nationwide Vehicle Contracts

Lease with Nationwide Vehicle Contracts and we’ll deliver your new vehicle anywhere in the GB mainland for free (exclusions apply).

Whether you live in the city or the countryside, Nationwide Vehicle Contracts will deliver your new lease vehicle direct to your doorstep, provided your address is situated on the GB mainland.

Free delivery applies to customers based in England, Wales and Scotland. For some locations in the Scotland, the Scottish Highlands and Scottish Islands such as Dundee (DD), Inverness (IV), Aberdeen (AB), Perth (PH), Oban (PA), Greenock (PA) Stranraer (DG) and Skye (IV) a delivery charge of up £450 may be applicable depending on distance and supplying vehicle manufacturer. Please speak to your sales consultant for further information.

For customers based in Northern Ireland, the customer would usually need to meet the delivery driver at the Cairnryan, Stranraer or Liverpool Birkenhead port to take delivery of the vehicle.

Where possible, we will aim to deliver at a time and date convenient for you and where possible, during daytime hours. We can also arrange for delivery to your workplace if required (subject to finance provider), helping to make the delivery process as smooth and as easy as possible.

On the day of delivery, our experienced and trusted delivery drivers will call you to confirm they are on their way (provided it is safe to do so) and will run through the key features of your new vehicle, providing a level of service that you usually only receive at a dealership.

If your current lease vehicle is with Nationwide Vehicle Contracts, we can also arrange for your existing vehicle to be collected on the same day, subject to finance provider and availability.

Whether you are a first time leaser or a company looking for an upgrade, check out our Fast Lease page for a wide selection of stock cars available for quick delivery at great prices.

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Apr
3

Fleet News | Car and Truck Leasing and Management


News





The controlled shutdown at Yokohama Tire Manufacturing Virginia (YTMV) goes into effect on April...

Due to the continuing impact of the COVID-19 pandemic, Yokohama Corporation of North America (YCNA) is temporarily suspending production at its plant in Salem, Va.



Blog Post





COVID-19 Offers Opportunity to Make a Dent in the Technician Shortage

Now is when the fleet industry should be proactively identifying these future technicians. The fleet industry has a window to tap into this idled labor pool, who will look attractive to other industries experiencing labor shortages leading to increased competition to recruit this talent



News





Paccar announced it is continuing its plant shutdown.

In response to the ongoing COVID-19/coronavirus pandemic, auto- and truck makers are announcing extended production and factory closures.



News





U.S. DOT and EPA Lower Gas Mileage Targets

The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) will increase the stringency of corporate average fuel economy (CAFE) and CO2 emissions standards by 1.5% each year through model year 2026, as compared with previous standards that would have required about 5% annual increases.


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