鈥疐leet Advantage, a leading innovator in truck fleet business analytics, equipment financing, and life cycle cost management (LCCM), released its latest white paper:鈥�淗ow Unbundling Your Full-Service Lease Can Save You Millions – Separating an FSL can save between 15%-25% in operating cash. Why give away cash that you will never get back?鈥澨齌he report听illustrates the听significant听organizational听flexibility and financial gains associated with an听Unbundled听Lease agreement compared with fleets that听use听a听Full-Service听Lease听(FSL).听
The principal difference between an FSL and an Unbundled听Lease听is that FSL is NOT transparent to the customer.听In听an FSL听agreement, fleets essentially hand over all decision-making on fuel and maintenance听& repair (M&R)听costs to their lease provider, instead only focusing on a 鈥渂undled鈥� monthly payment.听This听type of听contract can be detrimental to a fleet鈥檚 bottom line.听
听In an听Unbundled听Lease听agreement, fleets have greater flexibility on these individual costs, but also the听freedom to upgrade and scale听through flexible leasing,听guaranteeing the lowest-possible financial costs involved with听truck fleet asset management and听truck acquisition.听This听need for听additional听flexibility was evident in 2020, where a recent industry survey showed that听more than a quarter of fleets1听(27%) had to downsize their total number of trucks due to听COVID-19 economic pressures.听听
The report also addresses that M&R听is 鈥渇ront听loaded鈥� in听an FSL. Companies will pay a minimum of听7 cents听per mile in year one versus听2 cents听per mile when unbundling.鈥疐or fleets sensitive to their bottom line, it is not ideal to听pay 7+听cents听per mile in year one when the national average is听two cents,听and听the听truck is covered under warranty for at least听two听years.听听
This report听investigates听several other key areas, including:听听听
- The difference between an听Unbundled (UBL) and听Full-Service听Lease (FSL) by definition听
- Importance of flexibility in lease options in today鈥檚 environment听
- Demystifying fuel and maintenance costs in an听FSL听
- Building trucks with custom truck specifications听
- Significant finance savings听found听when comparing听UBL听vs.听FSL听
- End of lease听–听FSL听limitations听
- When to plan your听FSL听exit听
- Choosing the right听UBL听partner – why accurate data analytics can help you听plan听
鈥淧articularly听in today鈥檚 economy, it鈥檚 important that听companies听recognize they must be as flexible as possible with their own business models,鈥� said John Flynn,听CEO of Fleet Advantage. 鈥淲e saw this听early on in the听way听organizations听servicing restaurants听needed to听reallocate their trucks and resources to help with the demand in other areas听such as grocery. This has created a shift in some fleets and the way they approach their own business听models, and听Unbundled听Lease structures allow for this flexibility.鈥�听