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LEASE VS OWNERSHIP

The decision of whether to lease or own your transportation fleet can be challenging. Often, the most difficult part is identifying and quantifying the various true costs of ownership in order to make a meaningful evaluation. Similarly, identifying and quantifying the many operational & financial benefits a full service lease program delivers can also be a challenge.

Kinnie-Annex has the tools to help you through this evaluation process so you can make the right decision for your company. 

THE HIDDEN COSTS OF OWNING YOUR FLEET

EASY TO IDENTIFY 

  • Capital Investment for Vehicle

  • Cost of Capital/ Interest Expense

DIFFICULT TO IDENTIFY

  • Vehicle Procurement Process: Equipment Evaluation; Spec'ing; Financing; Acquisition

  • Opportunity Cost of Capital & Reduction in Available Lines of Credit.

  • Vehicle Legalization Cost; State Sales Tax; Licensing; Federal Highway Use Tax (FHUT); Fuel Permits; Ad Valorem/Personal Property Tax; State Inspections; Fines/ Penalties, ext.

  • Administrative Cost: Fuel Tax Reporting; Licensing, Taxes, Permits Processing; Maintenance & Repair Invoice Approval & Account Payable s Processing; etc.

  • Scheduled Preventive Maintenance Costs.

  • Unscheduled Repair Cost: Engine/Powertrain; Component Replacement; Wear Items. 

  • Tires.

  • Ever-increasing Parts & Labor Costs.

  • Catastrophic Repair Cost Risk.

  • Emergency Road Service/ Breakdown Repair Cost.

  • Towing.

  • Replacement Vehicle "Sub" Cost.

  • Vehicle Washing.

  • Owned Garage Expenses (if applicable).

  • Vehicle Disposal Costs.

  • Impact of Increased Downtime on Your Customer Service.

  • RISK

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