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Commercial Vehicle Leasing: Understanding End of Lease

Every commercial vehicle lease comes to an end. End of lease is part of the routine for any business that leases vehicles. But because you’re busy, it can also sneak up on you, and that can be costly.

It doesn’t have to be this way. In fact, end of lease can be an opportunity for your business.

Tim Vella, AVP of Southeast Regional Fleet for GM Financial, says that end of lease is a critical moment for businesses. “Every company needs to carefully consider every decision regarding their vehicles. And that includes how they handle the end of their vehicle leases.”

End of lease is about choosing the next best step for your vehicles and your business. But it’s also about making sure your revenue-generating workhorses stay on the road.

Commercial vehicle end-of-lease options

At the end of a vehicle’s lease, you can choose between leasing or buying a new vehicle, purchasing your lease vehicle or returning it. Each option comes with unique benefits and requirements and offers flexible solutions to businesses with unique needs and goals.

Although there are good reasons for purchasing or returning a lease, keep in mind that there’s more to a vehicle’s cost than what you pay monthly. “A newer fleet can end up costing you less,” Tim says.

After three years of service, maintenance costs and depreciation can have an increasing impact on your bottom line. Cycling new vehicles every three years can allow for stable payments while minimizing maintenance costs and maximizing tax benefits.

Commercial vehicle end-of-lease strategy

A strategy for replacing aging vehicles can do even more for your business.

Say you need to replace a truck, but you wait until the lease is up to talk to your dealer. If the dealership has it in stock, no problem. But if it doesn’t, you may find yourself with an aging truck or a different truck that doesn’t fit the job.

But “a cycling strategy is the key to making the most out of your end of lease,” Tim continues. “It provides a rhythmic cadence that makes your vehicle needs more predictable for your dealer.”

Your vehicles are the lifeblood of your business, so you don’t want to be caught off guard when lease end comes. And maybe you’d love to be more strategic, but you’re just so busy. Not to worry. At GM Financial, strategy is our sweet spot.

If you’d like help thinking through end of lease, putting together a cycling strategy or anything else related to your commercial vehicles, let’s set up a time to talk. We’d love to learn more about your business.

 

CONSULT WITH AN EXPERT

Ross Appleton
By Ross Appleton, GM Financial

Ross Appleton loves to help people navigate their toughest challenges. He believes that clarity is the key to flourishing in a complex world, and that a timely dad joke is good for the soul. When he isn’t talking or writing about big ideas, you’ll likely find him reading about them in old books. He is married, and two of his four children currently serve in the U.S. Army.

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