An operating lease will suit customers who are looking to increase, upgrade or renew their commercial vehicle at the lowest cost with a simple monthly payment over a negotiated period and on personalised terms.
An “ops lease” allows for the use of an asset over a period of typically 2 to 7 years but does not convey rights of ownership. Unlike contract hire, it excludes the degree of basic asset management that is inbuilt and you assume all maintenance, wear and tear costs such as tyres and servicing costs.
At the end of the contract you have options to refinance and extend the existing rental agreement, or return the asset, respecting the stipulated return conditions
“We’ve been working with Asset Alliance for around five years now. We’ve grown with them, and they’ve grown with us. They’re an honest company and they’ve always got our back. We greatly value their commitment to reliable, no-nonsense and expedient customer service.”
NV Transport Managing Director, Steven Zwinkels, March 2018
“We were bowled over by the quality of service and expertise among the staff at Asset Alliance. They’re so easy to deal with and we know that whatever issues we encounter along the way, they’ll jump straight in to rectify. It’s going to be very reassuring to have them by our side throughout the life of the contract.”
PJH’s Head of Operations (Cannock), John Nobrega, Feb 2018
OPERATING LEASE BENEFITS
An operating lease is therefore suitable for those operators who seek the flexibility to manage their own vehicle maintenance needs.
- A lease enables minimum capital outlay and fixed monthly rentals, benefitting cash flow.
- It removes the risk of the vehicle’s future value at end of the agreement.
- Another popular advantage of operating leases is the potential tax benefits as a lease may allow you to deduct your payments as operating expenses during the period in which you pay them.
- It also represents an off-balance sheet financing of assets. A leased asset and associated liabilities of future rent payments are not included on the balance sheet of a company and therefore reduces levels of debt and liability, reducing balance sheet gearing ratios.
WHY CHOOSE ASSET ALLIANCE
In addition to an award winning service and support, we aim to deliver three unique differentiating factors that help lower the costs of your operating lease:
- We can source the asset direct from the manufacturers on large fleet terms
- We understand accurate residual value setting
- We aim to retain and utilise assets over their entire useful life enabling us to reduce risk on residual values which enable further competitive advantage in our pricing.
Our Asset Alliance Fleet Management team has many years’ experience in the responsible management of truck and trailer fleets. All of the features and benefits of our contract hire, lease and HP options and potential refinancing of your existing leases and loans can be discussed in more detail with your Account Manager.
Contact us now on 01902 625330 to find out how our dedicated teams can help meet your individual needs.
We are thrilled to have retained our title as Commercial Motor’s Finance Provider of the Year for our flexible approach to funding.
See our full range of finance and leasing services
At Asset Alliance Group, our primary role is to help you select the best option for your business to optimize your P&L, balance sheet, cash flow and tax management through the range of options that are available to you.
As contract hire specialists, we offer an industry-leading contract hire product with or without maintenance, built on an unrivalled understanding of the commercial vehicle sector. Our contract hire solutions range from the smallest single truck to the fleet requirements of the UK’s largest logistics providers.
For companies that require a contract hire arrangement, but with a more flexible period arrangement, we also offer FlexiHire. It is as per our Contract Hire arrangements, but is offered on a 12 month rolling contract.
HP is instalment financing for those who ultimately wish to own the asset and assume all associated costs of maintaining the vehicle or trailer. It differs from a lease primarily in ownership, but it also presents other accounting practices which may suit your business.
With almost 5,000 vehicles under management, we are true commercial vehicle specialists in servicing and maintaining trucks and trailers and all forms of commercial vehicles.