All posts in Auto Leasing

Optimizing Vehicle Fleet Assets through Upstream Re-marketing

by Carsurfer Admin on 2016/04/20 in Auto Leasing with Comments Off on Optimizing Vehicle Fleet Assets through Upstream Re-marketing

It is every company’s nightmare having idle vehicles in their corporate pool areas. For almost every business, this means losing money, which is certainly not a trait of a successful and prosperous commercial enterprise. Idle vehicles are not only those sitting around and waiting for a driver, but also those old and withdrawn ones waiting to be re-marketed. Vehicles which are no longer in service still remain in the company’s lot, costing the business both money and valuable space. One of the best ways to optimize your vehicle fleet is through upstream re-marketing, and here is how to get the job done.

Maximize fleet assets with pre-marketing

With upstream re-marketing, every company can make the most out of their aged fleet and used cars right before the time comes for them to be dispatched. What this actually means is that in order to be productive and save money in the process, a company should always work on dispatching the old and aged vehicles before the replacement arrives. Waiting for the last minute to do it can result in severe negative consequences. By eliminating their days to replace or sell, companies can benefit and thus generate savings in depreciation, interim interest and other costs. Stories about successful vehicle re-marketing are still being told, and it is a business that will always exist as long as there is a vehicle fleet.

Every fleet has its own solution

Each company has a different approach when it comes to upstream re-marketing The most important factor for each company is finding out what they are trying to accomplish with vehicle re-marketing or pre-marketing their fleet, advise experienced asset re-marketing specialists. There are many companies which implemented the driver sales program, allowing them to offer the driver a lower price of the vehicle as a reward for proper maintenance while the vehicle was still in service.

This method has been proved to be the most successful upstream re-marketing plan, as not only do you reward your driver for his flawless service, you also ensure that he will maintain and take good care of the vehicles to come. Opposite to this method, some companies put their vehicles up for an auction on the company’s website or do a live event, where a competitive bidding is performed. There are many individual company philosophies, and even though they might be different, that does not make them right or wrong.

Things to know as a fleet manager

If you are a fleet manager aware of different aspects of service provider agreements looking to create a truly successful upstream re-marketing plan, here are the things you should know:

1. Things you want to accomplish – Each company has different points on view in terms of success and what it means to them. By spending money on each unit in a company’s portfolio and realizing that the increase in sales is low, reevaluation of the program should be undergone.

2. Written policy – Every upstream re-marketing program should be outlined in a written policy and carefully observed with periodic evaluations of the performance.

3. Communication is the key to success – Your job is to talk to all the potential buyers throughout the entire sale process, not only at the beginning of it. Gather feedback and make sure you improve your communication with all parties involved.

Choosing a pre-marketing company that will listen to fleet manager’s needs is essential for re-marketing success. If there are any problems in communication with the fleet manager or potential disagreements along the way, it is highly advised that you find a new pre-marketing company.

Every business should choose a solution which works best for them, and the one involving a vehicle fleet is no exception. Target the market which is best for your portfolio, and design a program that will help you address the market. Remember that if something works great for another company, it will not necessarily bring the same results to you.

Should I Buy or Lease? 5 Ways to Arrive at the Best Choice for You

by Carsurfer Admin on 2013/12/18 in Auto Financing, Auto Leasing with Comments Off on Should I Buy or Lease? 5 Ways to Arrive at the Best Choice for You

Deciding whether to buy or lease a car can be a tough decision. Although a lease is cheaper, it may not give you the best value for your money. Here are five things to consider when determining whether to buy or lease your next car.

How Long Will You Want The Car For?

If you like to trade in your car every few years, a lease is certainly for you. Most leases run for two to four years. This means that you don’t want to buy something unless you plan on keeping it for five or more years. So, if you’re the type of person that needs a change every now and again, leasing is the way to go. If you want to find the perfect car that you’ll be happy with for ten years or more, obviously buying is a better choice.

How Stable Is Your Financial Situation?

Will you be able to make payments for the next five years on your car? If not, you should strongly consider leasing. According to car experts who specialize in auto repair in Edmonton, a lease is also easier to get out of because lenders relax their rules when another driver takes over the remaining portion of your lease. If you feel that you are in a position to make payments on a car, you can consider buying. Evaluating your financial situation for the future can be difficult because you can’t always anticipate losing your job, or your business going under. However, if you think events like this are likely in the future, leasing is a safer option.

Is It For Business Or Pleasure?

If you are getting a car for your company, a lease is the way to go. Your monthly lease payment can be written off as a business expense. If you are getting the car for yourself, you may want to consider buying it outright if you can afford to. You should also consider that you can take business deductions for depreciation if your company owns it outright as opposed to leasing it. The use of the car an really make a difference in your decision to buy or lease, so make sure you know what your options are before you go looking.

How Much Can You Afford?

Lease payments are typically lower than a new car payment. This means that you get more car for less. On the other hand, you don’t build equity in the car each time you make a payment. If your only option to get a new car is to lease, you should consider buying a used car instead. Choosing between buying and leasing will require you to examine your current financial situation. As discussed before, you can’t always predict how stable your finances will be in the future, however you can base your decision off of how your finances look currently.

How Much Do You Drive?

Many lease agreements restrict the amount of miles that you can drive in a year. Typically, you cannot drive more than 12,000 miles in a year. While you may be able to buy more miles, it is generally cheaper to buy a car if you need to drive more than 12,000 miles per year. Perhaps you don’t realize how much you drive, and maybe it varies depending on the day, week, or even the time of year. If you are unsure, you can talk to your regular mechanic about whether to lease or buy based on how much you drive. Many mechanics have digital records of how often you get your oil changed, so they can tell you how much you drive in a certain period of time, making it easier to decide whether leasing or buying is the way to go.

So, should you buy or lease your next car? That depends on your financial situation, how long you plan to drive the car and how much you drive each year. Once you determine how much you can afford and how you plan to use the car, you can make an educated decision for yourself. As you can see, there is a lot to consider when making this decision, but if you evaluate your current situation, you will probably find that either buying or leasing is the obvious choice for you.

When it Comes to Car Leasing, Details Matter

by Carsurfer Admin on 2013/02/22 in Auto Leasing with Comments Off on When it Comes to Car Leasing, Details Matter

Congratulations! You have found the car of your dreams. That Audi A4 in scuba blue metallic is a real head turner, but it may also be beyond your ability to make monthly payments. And that is where car leasing comes in: by leasing your car instead of choosing a bank loan, your monthly payments will come in lower. Where the Audi A4 may have once been beyond your reach, you can now grab the keys, get behind the wheel and drive off.

Before you sign your lease agreement there are some matters to consider. Read on and we will discuss how to make car leasing a viable option for you.

1. Negotiate. As you would with any new car deal, you should negotiate the price of the Audi A4 or other vehicle that interests you. Once you settle on a price, then you will begin to discuss your financing options. You can also arrange financing independently, so keep this point in mind.

2. Open-end leasing. Not that common, but still offered is open-end leasing. Under this arrangement, the amount you owe at the end of the lease term requires you to make one final or balloon payment, representing the difference between the residual and market value of your car. In other words, you are required to purchase the vehicle at lease end, typically for an inflated price. This option is usually exercised by commercial lease customers, not public customers.

3. Closed-end leasing. Choose a closed-end car lease if you want to walk away from your vehicle at end of lease term. That does not mean that you may walk away without being assessed with additional charges. Excess wear and tear, and mileage overage costs may become a factor. You can also exercise the option to buy the vehicle, an especially attractive option if the residual value comes in lower than its published market value. That price is also negotiable, therefore you can offer to pay a different amount.

4. Your money. Whichever lease option you choose for your Audi, you will need to have money on hand to close the deal. Expect to pay a security deposit, your first and last month’s lease payment and perhaps an acquisition fee for processing your loan. You may have to pay sales tax and you are responsible registration, license tags and title fees. Some fees can be negotiated or even eliminated. Ask to have your documentation fee waived, typically a dealer charge that you do not need to pay.

5. Lease payments. You will be making monthly payments to the car leasing company throughout the lease term. Your payments are based on a number of factors included the car’s anticipated depreciation. Use a loan calculator to determine your monthly payments. Know your costs up front before signing your lease agreement. Make sure that the final agreement reflects the changes you negotiated.

Lease Considerations

Keep in mind that if you terminate your lease early, you will still be responsible for your payments. When leasing a car, you generally are not allowed to customize it and you are required to have sufficient insurance. The credit requirements for car leasing are typically tougher than regular financing, therefore make sure that your credit score is very good or excellent to obtain the best leasing terms for your Audi or other car possible.

Finally, consider a lease that is no longer than the car’s original warranty. Longer term leases or those that go beyond the car’s warranty can expose you to additional costs. Fortunately, a car like the Audi A4 comes with four-year or 50,000-mile limited warranty, offering the protection you need for the typical three-year car lease.

Author Information
Contract hire sales executive David Gillon, works for www.frontierleasing.co.uk. He is a car finance expert who regularly blogs about car leasing and the benefit of contract hire versus. buying a car for business or individuals.