Fleet Advantage Promotes Financial Wellness Month

Valuable resources available to help check your corporate fleet financial wellness! 

Organizations continuously need financial flexibility to adapt to changing economic climates and to scale their organizations accordingly. Finance professionals should align with their fleet operations teams and review their procurement strategy and finance options more frequently. Fleet Advantage regularly works with America's Top Corporate Fleets to ensure they are operating with the greatest efficiencies in mind, along with the lowest Total Cost of Ownership (TCO), offering a full suite of data analytics to determine the best finance option for their operation. Examples include:

• Lease vs Purchase
• Sales tax analysis   
• Unbundled vs. Full-Service Lease Analysis   
• Comparative cost analysis to determine the optimal time to upgrade equipment   
• Diesel vs EV Comparative cost analysis   
• Per unit P&L   
• OEM Equipment Cost Tracking   
• SWAP Rates  
• Residual Values  
• Predictive Life Cycle Modeling  

As an example, Fleet Advantage's latest Lease versus Purchase Analysis of heavy-duty truck equipment shows significant operational and financial benefits for organizations. It is evident that there is an after-tax advantage to leasing a tractor of $9,798 per truck. The analysis considers various inputs including:

• Equipment cost
• Bonus depreciation
• Resale value
• State sales
• Federal tax rate
• Lease rate factor
• Discount rate - a function of the current market forces

The total cost associated with purchasing an asset includes the upfront cost of the equipment, depreciation expense, tax expense, and the resale of the asset at the end of its useful life resulting in a net present value of $95,321. The total cash outflow associated with leasing an asset are the fixed annual costs in the form of lease payments including state sales tax resulting in a net present value of $85,523. 

Today’s fleets continue to seek advanced data-driven tools that can help offer insight into their decision making, which is why it’s critical to work with a holistic asset management partner that can help maximize efficiency and reduce cost at every opportunity.

Find out which analysis works best for your operation and schedule a Complimentary Fleet Financial Wellness Check today!