Fleet management is a complete mobility solution for Corporate entities. Fleet management involves:
- Analysis of a company's existing fleet, car policy, vehicle requirements and investment potential.
- Counselling on how to optimally manage the Fleet.
- Composition and acquisition of Fleet resulting in considerable savings and optimum fleet efficiency for the company.
- Implementation of innovative Leasing options thus freeing customers' resources from non-productive assets.
- Management of fleet operations including maintenance, accident handling and insurance management with value added services like round-the-clock road assistance, replacement vehicles, etc.
- Fleet resale at the end of the contracted period.
Who can benefit for Car leasing or long term Car rentals?
The benefits of Car leasing and long term car rentals - generally referred to as Fleet Management as best suited to:
- Large Corporates that buy a large number of Cars / vehicles
- High net worth individuals who would appreciate the value added services that come with the Leased car
- Foreign nationals and Expats who may be working in India for a couple of years and do not want the hassle that go along with owning a car such as RTO formalities, Car insurance, insurance/damage claim management etc.
What are the benefits of Fleet Management?
The benefits of Fleet Management are many:
- Cost saving: At the outset, the monthly Lease rental will reflect only the difference between the investment and the estimated market value. The Leasing company's maintenance schedule generally leads to reduced costs through better Fuel consumption, extended warranties and reduction in downtime. Furthermore the Leasing company takes care of all the administrative work, therefore the company need not deploy resources to manage for its fleet of vehicle.
- Innovative funding: Companies need not block their funds to purchase a fleet of Car, in fact, most Leasing companies offer a Sale & Lease back product option that can even free capital deployed in existing fleets.
- Tax Management: The tax benefits accruing to the Company in the case of Leasing are greater than the tax benefits on depreciation in the case of Company owned Fleets/vehicles.
- Administration: The Leasing company usually takes care of all the paper work, maintenance, Insurance co-ordination etc. saving the company hundreds of man hours.
- Employee satisfaction: Taking cars on Lease for your company can get you bigger and better cars within the same budgets, ensuring higher morale and motivation. Stringent maintenance standards ensure a hassle free driving experience.
- Know your costs: Calculating and budgeting the expenses towards acquiring and managing a Fleet of cars and in turn policy formulation becomes very easy. One simple amount includes all costs on the agreed terms.
What are the benefits of leasing cars vis-a-vis purchasing them outright?
By Leasing cars, you donot deploy scarce capital towards non-core assets and as such you free up your capital for injection into your core business. The leased asset can then be treated off your balance sheet, which means you make savings, as you claim the entire lease rental as an expense deduction. At the end of the contract period, you do not have to worry about the disposal of the car as your Leasing company takes care of the same. Also, you do not have to worry about all the service elements associated with operating the car such as repair, maintenance, accident management, 24-hour road assistance, replacement cars, etc.
If your company wants to free the capital that has been blocked in purchse of vehicles that are non-productive assets, then the Leasing company can do a Sale & Lease back of your fleet which gives you the complete benefits of Fleet management, and frees up your blocked capital. Alternatively, the Leasing company can also offer you plan where they provide management services to Manage your Fleet for a fee, which involves taking care of all your mobility requirements other than funding.
Are there any value added services offered by Leasing companies?
- Some Leasing companies provide a 24-hour roadside assistance service, in case of a breakdown. All you need to do is to call the helpline number and professional help will be on its way in the shortest possible time.
- Some Leasing companies offer you the unique facility of having your cars picked up for servicing and dropped off afterwards, so that your employees save valuable time.
- Some leasing companies provide you with a replacement vehicles, if your vehicles are in the workshop, for servicing or damage repair.
- As a Leasing company procures a large number of cars they have strong relationships with insurance service providers and this ensures that they take care of accident repairs and insurance claims quickly and effectively.
- In case of any damage or vehicle immobility, leasing companies have a 24-hour helpline number. The Leasing company will arrange assistance, and also coordinate with the insurance company, surveyor and workshop till the repairs are complete.
- In the event of an accident the Leasing company will pay the difference in amount, if any, between the damage repair invoice of the designated workshop, and that reimbursed by the insurance company.
- Some Leasing companies offer the option of a "Lead-In" car that helps you become or remain mobile while you wait for the delivery of your new leased car.
