Leasing vs. Ownership

Several factors help customers determine whether they should lease or buy their trucks. The type of operation, truck configurations, managerial or organizational preferences, routes, seasonality of work, and financial considerations all come into play.

Ownership

Ownership can be a smart option for companies that rely on ownership as a key part of an overall equipment acquisition strategy. Owning equipment and other hard assets, such as warehouses or property, may be part of the culture of the company or simply a financial preference. Customers with their own shops sometimes choose to purchase their equipment so they can maintain it themselves and keep it longer.  

Ownership costs also include ongoing maintenance, staffing, repairs and replacement costs to keep the vehicles running. Changes in technology, regulations, and the challenge of recruiting, retaining, and managing skilled staff require additional investment. Outsourcing the maintenance of vehicles to companies like Expressway Trucks offers a manageable option for many companies who own their equipment. Companies can leverage the economies of scale, investment in technology, and extensive technician training that Expressway Trucks provides at a lower overall cost of ownership than they would incur on their own.

 Full Service Leasing

The decision to full service lease often incorporates both financial and operational considerations.

Financially, leasing allows many customers to obtain equipment without incurring the upfront costs and credit constraints of ownership. Although the economy is improving, capital can still be tight and margins may be thin. Leases reduce the need for an initial down payment required for most purchases. Utilizing an operating lease allows the company to expense the cost of the vehicle monthly rather than carry the liability on their balance sheets. That means more credit flexibility so they can put capital elsewhere in their business.

Rapid changes in technology today mean quicker obsolescence of vehicles. The shorter trade cycles associated with leases mean customers are able to upgrade to newer technology sooner than they might if they owned their vehicles. This can be appealing to fleets who prefer to spec a premium product in order to attract and retain drivers or for customers that seek out new safety-related technology. Some businesses may prefer to outsource particular vehicle or technology types, say specialized equipment or trailers, to keep control of their staffing costs.

In addition, full service leases that include the maintenance can streamline operations for customers that don’t have their own mechanics or shops and maximize their trucks’ up time.

Preferential rental terms within lease contracts can also allow customers to dial up capacity for seasonal work or short-term contracts and dial it back down when demand has subsided.

For managers contemplating this choice, Express Lease can help them evaluate the costs and benefits of each option. Then, you can determine what the best course of action would be for your particular circumstances.

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Express Lease Advantage

Express Lease partners with customers to provide full-service leases that are uniquely structured to promote safe and efficient operation of fleets, including:

• All repairs, service, warranty, etc. is done in house by our factory trained mechanics.
  • Our competition brings your leased Hino & Volvo trucks to Expressway to repair them. By-pass them and deal direct and save valuable down time and reduce your operating costs!  
• Top of the line heavy truck service facilities.
• Facilities are conveniently located to major commercial traffic lanes.
• Some service facilities have extended hours.
• Express Lease is an authorized Hino and Volvo dealership.
• OEM trained mechanics on both Volvo & Hino.
• Internal body shop and modification center located in Ayr - provides quick turnaround on body repairs, reducing down time. 
• Expediting maintenance and repairs to increase uptime.
• Easing hassles associated with compliance.
• Removing the many hidden costs of ownership.
• Helping customers focus on their core competencies.
• Offering financial flexibility.
• Keeping fleets up-to-date.
• Providing access to new technology and maintenance expertise to support it.
• Providing rental flexibility when capacity requirements change.
• 24/7 Roadside service across North America on all FSL units (Full Service Leases)
• Emergency mobile service unit.
• Pickup and delivery for services is available.
• 75 + years combined experience in the FSL industry.
• No upfront capital investment.
• Fixed monthly costs – no surprises and easy for budgeting (Full Service Lease Program)