The Advantages Of High Mileage Vehicle Leasing
Unfortunately, when the mileage you put on your commercial vehicle is higher than average you will pay a penalty regardless of whether you own, finance, or lease. When you own or finance, and go to sell, higher mileage will decrease the vehicle value. If you lease, you will have to pay additional fees (usually per kilometre over the agreed number). But when you need your vehicle to sustain and grow your business, there is not much that can be done about high kilometres.
The first step to a smart commercial vehicle strategy is to determine if buying, financing, or leasing makes the most sense for your business. Buying outright requires large capital expenditure and could leave you without vital cash flow for other operating costs. If you need manageable monthly payments to maintain cash, read Is Vehicle Leasing or Vehicle Financing Better For Your Business. But you don’t have to let the worry of excessive mileage stop you from choosing vehicle leasing. Just request a high mileage vehicle lease. This vehicle leasing agreement will allow you to exceed the standard mileage limits without accumulating excessive additional costs.
What Is A High Mileage Lease?
The typical mileage allowance in Canada for vehicle leasing agreements is 16,000- 20,000 km/year. This works out to about 385 km/week; not a lot if you drive every day or travel outside city limits frequently. The average vehicle leasing company will charge 8-20 cents per additional kilometre. Even for businesses that are fairly conservative in the number of kilometres they go over, this can add up to thousands of extra dollars over the course of the vehicle leasing contract term.
A high mileage vehicle leasing agreement will allow for above-average mileage from the outset of the agreement, so your business will not have to worry about unexpected charges upon completion of the leasing contract. If you have been operating for a while, you should have a fairly good idea of the kilometres you travel each year. If you are a new company, a smart and strategic estimate will allow your vehicle leasing company to incorporate a reasonable high mileage clause. Typically this amendment to a standard lease contract will have some costs involved, but they will be spread over the term of the lease and your leasing company will work with you to arrive at the most favourable terms.
High Mileage Vehicle Leases With First Capital Leases
If you think that vehicle leasing is the smartest commercial vehicle strategy for your business, but you worry about excessive fees due to heavy driving requirements, ask your lessor about high mileage vehicle leasing. This vehicle leasing strategy is ideal for businesses when typical operations involve trips and travel that rack up the kilometres.
First Capital is the choice leasing partner for all of your business’s commercial vehicle leasing and commercial equipment leasing needs. Read more about the benefits of leasing and the common mistakes of leasing to make the most informed purchasing strategy decisions for your company.
First Capital Leasing in Calgary is a full-scope financial services provider with the knowledge and experience to create tailored financing solutions that meet your needs and the goals for your company. We can help you figure out which strategy can support your current operations now and in the future. For easy application and quick approval, fill out our online application. You only need to apply once and First Capital leasing will continue to be your financing partner for all your business equipment needs. Approval can usually be completed in less than 4 hours! If you are ready to explore loans and leasing for your business, call our team at First Capital Leasing at 1-888-251-3644 or fill out our contact form today.
Q: Are there restrictions to the type of vehicle I can lease?
A: Most financial institutions have stringent restrictions on what can be financed. However, at First Capital Leasing, we will work tirelessly to get you the commercial truck or vehicle your business needs regardless of the year, hours, or kilometres, including water trucks and tankers. We can also accommodate any supplier(s) and auction house, as well as private sale transactions to ensure your business has the vehicles it needs to thrive and grow.
Q: How does my business explore commercial vehicle leasing with First Capital?
A: Our process is simple:
- Choose the vehicle(s) and the seller of your choice. Confirm the full asset details, along with the cost.
- Complete our online application, which is instantly submitted to our credit team. Existing customers do not need to re-apply.
- Once approved, a First Capital team member will contact you to discuss your financing options. We will then contact your supplier to arrange for invoicing of the purchase. Documentation is then provided for your review.
- Upon receipt of all required documentation, our funding team will work on payment remittal to the supplier. We can accommodate any prepayment or deposit terms the seller requires.
Q: What are the benefits of choosing First Capital Leasing
A: If commercial vehicle leasing is the right option for your business, partner with First Capital Leasing to make purchasing your vehicles easy. With over 85 years of combined experience in commercial vehicle leasing, we have the knowledge to provide you with the right vehicle leasing solutions for your business. The benefits of partnering with First Capital for vehicle leasing include:
- Customized payment schedules that fit the cash flow of your business
- No kilometre restrictions
- No age restrictions
- Quick approvals (four hours or less) APPLY HERE
- Fast turnaround (documents signed and supplier paid is as little as 24 hours)
- High approval rates
- Lease To Purchase Options