A Dealer Direct Finance Operating Lease is simply a long term, fixed price truck/bus rental. It allows you to make immediate use of the vehicle with the ability to handle rental payments as you generate operating income.
With a Dealer Direct Finance Operating Lease you have the use of a truck/bus for an agreed period, usually from 2-5 years. You retain responsibility for the repair and maintenance of the vehicle and at the end of the lease you simply return the vehicle to Dealer Direct Finance.
- You can budget the costs – except for maintenance
- Preserves working capital so funds can be invested on other parts of the business
- Cash flow is efficient – rentals can be paid out of the operating income
- Tax efficient- rental payments can be offset against taxable profits
- An “off balance sheet” transaction- accounting ration can be improved
- Customer has no disposal problem or risk on re-sale value; this is taken by Dealer Direct Finance (conditions apply)