VEHICLE LEASING INFO
Benefits of Vehicle Leasing
Vehicle leasing is a smart decision. We lease any type of vehicle you need for your business. Our leasing representatives have over 100 years of combined vehicle leasing experience and can effectively consult on and manage all your transportation needs. Whether you need one vehicle or an entire fleet EFFCU is here to help. It is a great time to lease, so you may want to consider the advantages of leasing your next vehicle.
Advantages of 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
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.
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Types of Leases
We offer two types of leases for vehicles:
Open End Lease
An open-end lease is a lease agreement in which the amount you owe at the end of the lease term is based on the difference between the residual value of the leased vehicle and it's realized value. Your lease agreement may provide for a refund of any excess if the realized value is greater than the residual value and vice versa.
• Residual is set at lease inception
• Lessee participates in gain or loss; it’s a financing arrangement
• Residual is based on many factors including: mileage, specifications, location and current market
• Lessee can be given the option to buy at lease end
• No wear & tear fees
Closed End Lease
A closed-end lease does not contain a purchase or renewal option, thereby requiring the lessee to return the vehicle to the lessor at the end of the initial lease term. Also refers to a vehicle lease in which the lessor absorbs the entire risk of the residual.
• You only pay for the portion of the vehicle you actually use
• Mileage restrictions
• Vehicle MUST be returned in good condition
• Lessee bears no responsibility for residual value
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Vehicle Fleet Services
EFFCU can provide the following services for your leased vehicle(s):
• Accident Management
• Maintenance & Mechanical Repair
• Vehicle Rental Services
• Fuel Management Programs
• Safety Programs
• Web-based Applications
Accident Management
Having an accident can be a stressful and difficult situation, and you and your drivers do not have time to deal with this time-consuming process. This program handles every aspect of an accident situation including accident reporting, vehicle repair, rental car, subrogation and salvage.
Subrogation features include:
• Knowledgeable collection experts
• Prompt contact of responsible parties
• Faster, larger settlement of your claim
• Claim specialists with contacts throughout the insurance industry
• Asset checks on uninsured third parties
• Police reports procured in a timely manner
• Claim progress via a secure web site
• Regular management updates
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Maintenance & Mechanical Repair
Maintenance is critical for any type of vehicle. Keeping your fleet in working order is critical to the success of many businesses. Preventative maintenance, major mechanical repairs, glass repair, and 24-hour roadside assistance are all included in the maintenance package.
Preventative maintenance features include:
• Computerized service records on fleet vehicles to ensure prompt work completion
• Specialized reports for managing your fleet for scheduled maintenance
• Competitive pricing through brand-name vendors
• Coupon books, identification cards, and purchase orders customized for your fleet
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Vehicle Rental Services
We have access to a network of over 6,000 car and truck suppliers with access to over 500,000 vehicles of all types. This network provides vehicles throughout the United States. No matter where your driver breaks down or gets into an accident he/she has access to a rental vehicle. Many of the companies in the network offer unlimited mileage. Rates are pre-negotiated to ensure consistency, rather than having to pay based on demand. The rental program also offers several levels of rental insurance for you to choose from.
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Fuel Management
Vehicles are in constant need of fuel and businesses are in constant need of fuel management. The fuel program offers companies the option to give their drivers fuel cards. These fuel cards can be used to purchase fuel, alternative fuels, lubricants, and necessary fluids. Each card is assigned to an individual driver, so you can track individual spending. This program also allows you to set spending limits for each driver. Purchase limits can be limited to products, per day spending, and/or per month spending.
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Safety Programs
Your vehicles are dependent on your drivers. Unsafe or reckless drivers equal high maintenance costs and high probability of accidents. The safety program reviews driver records, safety records, and loss history, which allows you to establish a standard for your drivers. It also helps with safety seminars, safety training courses, vehicle safety kits, and policy manuals. This helps reduce your overall fleet costs by minimizing repairs and accidents.
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Web-based Applications
Your fleet management package is made complete with web-based applications. This package offers online information services, which allows for easy access to all your fleet information.
Benefits of the online information service are:
• Prompt access to pertinent information relating to claims
• Real-time access to the subrogation process and recovery of the loss
• Reports and Graphs
• Secure tracking site offered at no additional cost
Think about it. Let us analyze your fleet. There's no cost to you. Use our expertise. And, if you are looking for a single car purchase, new or used, give us a call. We can help!
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Click Here To Apply On-line For a Vehicle Fleet Lease
Or give us a call at 800-882-5018 ext 5454.
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