5 Facts About Hybrid Leasing
Hybrid leasing is an innovative approach to vehicle leasing which provides flexibility for the client and fleet management solutions that offer a variety of benefits. At Total Motion we have spent many years developing technologies and initiatives which result in the best and most accurate information being made available, with which we can ensure that our clients are exposed to, not just the best deals available, but also the best information upon which to base their judgements.
One of these fleet management services is hybrid leasing, which is a way to take the regular contract hire model but provide the client with more detailed information and also a say in how the vehicle is disposed of at the end of the lease, which ‘could’ result in you receiving a share of the profit.
From the detailed information studied and analysed you can receive more cost effective deals, this is based on data that allows you to consider more options in terms of the vehicle you choose and how the deal is structured. So let’s look at five facts about hybrid leasing with Total Motion:
- You can take out a hybrid leasing deal with or without maintenance – all drivers know that service and maintenance costs are an important factor in the costs of motoring and your general vehicle management. Including maintenance in the structure of a car leasing deal is pretty standard across the board, but with hybrid leasing we offer you the flexibility of including maintenance in your deal, or not. Some motorists feel they can find their own service and maintenance deals, or at least would like the flexibility of being able to find one, so we allow you that option and your deal is structured accordingly.
- Hybrid leasing uses our Actual Whole Life Cost system (AWLC) – calculating your monthly payments is the key factor in any car leasing agreement, and so we developed the AWLC system over 20 years ago to make this as accurate as possible, and since this time it has been adopted by the car leasing industry across Europe. Using constantly updated data, AWLC allows the client to make informed decisions on manufacturers and vehicles, the true cost of vehicles, how long a lease period on a particular vehicle should last and other trends which can influence the cost effectiveness of a car leasing deal. An AWLC calculation takes into account several different usage and associated time-sensitive factors far and above merely depreciation, and which help to ensure you have a genuine and accurate cost for leasing that vehicle at that moment in time.
- Early termination – we understand that circumstances change and sometimes you need to end a lease agreement early, and we don’t think you should necessarily be punished for that. So in the event that you need to terminate an agreement for any reason, you will not be penalised, but we use a simple calculation to work out how to address the vehicle’s value:
Balance outstanding less the vehicle’s value
It is possible therefore, that older vehicles may result in the client receiving a credit, because the vehicle’s value exceeds what you owe on it. Compare this to most contract hire agreements where you will be charged for an early termination regardless.
- No mileage restrictions – because we have used the AWLC system to ensure the vehicle’s value is as accurate as possible, we don’t worry too much about depreciation and how you use the vehicle. We find that mileage restrictions influence a client’s thinking too much and so we don’t apply any excess mileage charges in our hybrid leasing agreements.
- Profit share in the vehicle’s disposal – when a vehicle comes to the end of its lease period it can be sent out for used car leasing, but most vehicles are sent out to auction. However, we have developed a system which looks at each individual vehicle with different criteria and assesses which disposal route will offer the best return, ie. taking into account the vehicle’s age, mileage, type and condition. This could be a trade sale to vehicle traders or retailers, selling the car ourselves or selling the car internally to our staff. Whichever route we use, we will share any profits with you, 90% in your favour and 10% to Total Motion.
We believe that hybrid leasing is an innovative way to present information to clients, and when so much data and analysis is available, we believe it should be used to benefit the client and provide the best fleet management solutions. Having accurate and thorough information in a changing industry means that we can provide additional benefits which offer flexibility and put the power into the hands of the client. So get in touch today and we can talk about hybrid leasing for your fleet management needs.