PLS Leasing and Purchasing Options

With PLS, you’ll select from a wide variety of fleet leasing and purchasing options. Here are definitions for each, as well as the pro and cons, where applicable:

Purchase Programs

For those who prefer to own a fleet instead of leasing, PLS offers a purchase program that handles everything from planning and acquisition through management, maintenance and remarketing.

On behalf of the buyer, PLS:

  • Advises on model and equipment selections
  • Negotiates prices for advantageous deals
  • Assists, when necessary, with OEM warranty claims
  • Facilitate maintenance or repair services

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Leasing vs. Purchasing

Many fleet operators choose to lease rather than purchase. By electing one of the many PLS leasing options (described below), lessees can:

  • Preserve working capital
  • Improve cash flow
  • Possible off-balance-sheet reporting
  • Match depreciation with actual driving patterns and market conditions
  • Reduce tax obligations; lease payments are a tax-deductible expense
  • Minimize acquisition costs via OEM or fleet incentives
  • Pay sales tax on a monthly basis, as opposed to sales tax paid “up-front”
  • Only pay tax on lease payment not the full price of the vehicle

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Open-End or TRAC (Terminal Rental Adjustment Clause) Leases

A lease in which the actual cash value is determined when you turn the vehicle in at the end of the contract. If the vehicle is worth more than the set residual value, the leasing company pays the lessee the difference. If it’s worth less, the lessee pays the leasing company the difference.

  • Possible off-balance-sheet reporting
  • No mileage, damage chargeback, no penalty for early term
  • Expense lease payments on a monthly basis
  • Pays use tax on a monthly basis, and not sales tax up-front at time of purchase
  • Pay on the actual usage of the vehicle

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Closed-End Leases

A lease in which the vehicle’s residual value is pre-determined. At lease end, the lessee’s risk is minimized; they are obligated to pay only for any extra mileage, excess wear or damage. As a result, these are sometimes called “net,” “no-risk” or “walkaway leases.”

  • Fixed price with no residual vs. fair market value consideration at lease end
  • Ease of budgeting and reduced administration
  • Adjust your fleets mileage expectations
  • Ability to remove the risk in your fleet

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Fixed-Rate Leases

A lease in which the interest rate – an important factor in the cost of any lease is determined “up front.”

  • Benefits from precise budgeting with stable monthly payments for the term of the lease
  • Enjoys “opportunity savings” by locking in a lower rate if interest rates rise during the lease term

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Odd-Term Leases

A lease in which the term does not adhere to the industry standard (e.g., 24, 36 or 48 months) but extends to an odd length, such as 13, 29 or 38 months.

  • Gain greater lease-term flexibility, when desired

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Used Vehicle Leases

A lease featuring a pre-owned vehicle.

  • Enjoy lower payments  by avoiding the vehicle’s first-year depreciation (which is often substantial)
  • May pay lower insurance premiums throughout the lease term
  • Gain “like-new” performance, reliability and appearance
  • Enjoy the remainder of the OEM warranty
  • PLS maintenance management plans available

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Short-Term Leases

A lease with a shorter-than-standard length, often used for multi-passenger vans as well as cars and trucks, short-term leases meet specialized needs, including those for:

  • Special project vehicles
  • Seasonal transportation
  • Evaluation vehicles
  • Temporary employee programs

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Purchase & Lease-Back Programs

A plan in which you sell your fleet to PLS; we’ll then immediately lease your vehicles back to you based on your fleet needs.

  • Major savings in comparison to leasing a new vehicle
  • Maintains stability by continuing to operate a vehicle already in fleet service
  • Gains capital through the asset sale for other uses
  • Focus on your core business while PLS manages and maintains the fleet

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Potential Off-Balance-Sheet Reporting

A  plan in which you fund your fleet through PLS rather than with cash or financing via a traditional source such as a bank.

  • Preserve existing line of credit for other uses
  • Removes depreciating assets and liabilities from balance sheet
  • Reduces potential tax liability

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Employee Purchase Programs

Selling off-lease vehicles to your employees offers multiple benefits to you and the worker alike:

  • Dispose of off-lease vehicles quickly
  • Provides an employee benefit
  • Relies on PLS to handle the purchase payment and assist with vehicle sale/purchase documentation
  • Retains a vehicle they enjoy driving
  • Purchases a vehicle at a competitive price, often below retail

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PLS combines custom fleet solutions with superior customer service. Click here or call 877.PLS.LEASE to speak with one of our experts.