Cost Per Mile
Cost per mile is a major financial factor you must take into consideration with fleet management. Merchants Fleet has solutions for keeping costs at a minimum without sacrificing the quality of your operations. Whether you need a few sedans for your private company or a fleet of 50 buses for your corporation, we can help you keep costs low and business running as efficiently as possible. View our list of available fleet vehicles. There are many ways you can benefit from partnering with our team. Gaining control of costs of ownership is just one of the advantages we can provide.
Let Us Help You Keep Track of Cost Per Mile
Cost per mile expenses in a leasing agreement are determined by the terms of your contract. When you work with Merchants Fleet, we put you in the driver’s seat. You have total control over the type of leasing agreement you get. Our company is not in the business of selling generic, template-style leasing programs. Instead, we use a consultant-based approach steeped in our tailored fleet leasing system. Read our philosophy to get an idea of how we handle fleet leasing. If you are concerned about your costs per mile while managing your fleet, we’ll work with you to come up with a solution. Here’s how the process works at Merchants Fleet:
- You will meet with our experienced fleet management consultants. We will get to know your business, including its size, fleet needs, operations, and applications.
- You will explain your needs, concerns, and desires for your leasing program. From there, we’ll give you an expert recommendation based on your specific company. We have a wide range of leasing programs to choose from.
- Then, we customize your contract to include everything you need and nothing you don’t. You won’t have to pay for features you won’t use.
- You’ll have the opportunity to bundle your lease with our myriad other fleet management and insurance solutions. See what we have to offer! Merchants Fleet is a one-stop solution for virtually all your fleet needs.
- We will provide you with all the transparent information you need to make your decisions. Our team of bright minds is the best in the industry, and will be here to offer support and advice every step of the way.
Our approach to fleet vehicle leasing puts you in complete control of your future. If you want a flexible, adaptable lease that works with your crew’s needs, we have the solution for you. We will help you understand the elements that affect cost per mile in your fleet, and give you leasing options that minimize costs and risks.
Cost Per Mile: Closed-End vs. Open-End Lease
When leasing a vehicle or fleet of vehicles, you can choose between a closed-end and an open-end lease. Understanding the differences between these two basic types of leases can help you manage your costs per mile. Examine each type of lease in more detail. Here are the main differences between the two types:
- In an open-end lease, you (the lessee) take on a significant amount of risk of ownership. These include depreciation of the vehicle(s), swings in the used vehicle market, and expenses related to the mileage and condition of the vehicle(s). You will not know the total cost of an open-end lease until the end of the term and the sale of the vehicle(s). If you incur losses, such as going over your mileage terms, you may have to pay for them. In this scenario, your costs per mile may fluctuate greatly. If you incur a loss at the end of your open-end lease term, your lease provider (the lessor) will treat it as an additional lease payment. It’s possible that your lease will at this point meet the requirements of an operating lease. In this case, the lessor will account for a portion of your losses. Your contract will have provisions that ensure the lessor meets operating lease requirements in the event of substantial losses.
- In a closed-end lease, the lessor takes on the risks of ownership. You enjoy fixed lease terms and a fixed mileage/condition agreement of vehicle prior to signing the lease. In this lease structure, you know exactly how much you will pay for the total lease. If your actual vehicle usage differs from the terms of the lease, provisions allow for adjustments at the lease’s end.
- Since you only have to pay the difference between the cost of the vehicle(s) and their residual value (or actual usage), a closed-end lease allows for additional cash flow and more consistent cost per mile. This type of lease is often best for organizations that want to minimize risks and avoid surprises at the end of the lease’s term.
The biggest factors determining the best lease for you are the terms of the lease, monthly payment amount, and amount due upon signing. You must also look at the mileage cap, or the maximum number of miles your lease allows before accruing excess mileage fees, and the cost per mile you will have to pay if you exceed your cap. Merchants Fleet can help you manage all these factors, and come up with the optimal leasing plan for your organization.
Take Control of Your Cost Per Mile with Our Help
With more than five decades of fleet management, leasing, and insurance experience, Merchants Fleet has the knowledge and resources you need to take control of your fleet’s cost per mile. You no longer have to worry about your vehicle mileage or usage. Our management solutions will give you peace of mind and the freedom to run your operation how you please, without risks of surprise fees at the end of your term.
Our experts can help you decide on the best leasing agreement for your particular organization, and work with you to ensure your satisfaction with the lease’s terms. See our client testimonials. We are more than just a service provider – we are your partners in fleet management. We take your cost per mile and other fleet goals seriously, and give you a viable way to meet them. Our family-owned and operated company truly puts the clients first. To find out how Merchants Fleet can keep your cost per mile affordable, call us at (866) 653-2737.