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LEASE VS OWNERSHIP

Choosing between leasing or owning your transportation fleet can be a complex decision. The hardest part is often pinpointing and calculating the true costs of ownership for a meaningful evaluation. Likewise, assessing the numerous operational and financial benefits of a full-service lease program can be equally challenging.

Kinnie-Annex provides the resources to assist you in this evaluation process, ensuring you make the right choice 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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