Acquisition Services
Open-Ended Leases
An open-end fleet lease is truly your best bet if you’re in the market for ultimate flexibility. It’s as close to owning your vehicles as you can get while still enjoying the perks of leasing.
Open-End Leases
Effortless Fleet Leasing, Maximum Flexibility
Flexible, versatile, adaptable — that’s what open-end leases are all about, giving you the freedom to flex your fleet to meet the changing needs of your business. You make payments to use the vehicle, but unlike a traditional lease, there are no strict mileage limits, and at the end of your term, you have options.
- Great for high-mileage needs
- Flexible, budget-friendly payments
- Lower upfront costs keep cash flow in check
Flexibility on Your Terms
Return the vehicles when you need to without worrying about mileage penalties
Heavy-Duty Ready
Ideal for high-mileage or off-road operations with no damage fees
The Best of Both Worlds
The flexibility of ownership with the tax advantages of leasing
Choose What Works For You
Finance options include both fixed and variable interest rates
Vehicle Fleet Leasing vs. Owning
Finding the right fleet financing option comes down to three key factors: flexibility, cost, and control.
Leasing offers greater flexibility, lower monthly payments, and less maintenance hassle. Owning gives you greater control and the ability to build equity, but comes with higher upfront costs and added maintenance responsibilities.
When you lease, you also get some extra perks like our fuel management and maintenance services. We’ll help you keep fuel costs under control with fuel cards for your drivers, and we’ve got routine maintenance covered so it’s one less thing on your radar.
And depending on the type of lease you go for, you’ll get different financial benefits. With an operating lease, you can deduct 100% of your lease payments for tax benefits. Or, with a capital lease, you can claim depreciation and deduct the interest on your payments.
| Factor | Leasing | Owning |
|---|---|---|
| Cost structure | Flexible terms available that align with your business needs | Less flexibility and long-term ownership costs; no monthly payments once the vehicle is paid off |
| Acquisition process | Acquiring vehicles is quick and easy, with little-to-no upfront costs | Requires financing or cash up front; often involves a more detailed approval process, including credit checks and a down payment |
| Short-term options | Short-term leasing allows temporary scaling to meet peak/seasonal demands | Less flexibility in short-term usage; still tied to long-term ownership costs |
| Cost savings | Save on fuel and maintenance costs; newer leased vehicles are often more fuel efficient and under warranty, meaning routine maintenance and repair costs are typically covered | More budgeting and forecasting costs |
| Control over vehicle lifecycle | Increased control, resulting in savings on fuel and maintenance | Longer lifecycles, which can increase non-preventive maintenance costs |
| Model upgrades | Simple, cost-effective way to upgrade to newer models | Vehicles are cycled less often because of high investment costs |
| Monthly payments | Lower monthly payments | Higher monthly payments, but leads to full ownership after the vehicle is paid off |
| Vehicle disposal | Lessor takes care of vehicle disposal | Owner must arrange for vehicle disposal |
Thinking About Going Electric?
Merchants Fleet provides the same flexible leasing options for both electric vehicles and traditional vehicles, making it easy to try EVs in your fleet. Have questions or need more information? Our EV experts are ready to assist!
Frequently Asked Questions
Who are open-end leases ideal for?
If flexibility’s what you’re after, an open-end lease could be the perfect fit. They’re great for handling high mileage, unpredictable use, or if you want more say in what happens to the vehicle when the lease is up.
What does the structure of an open-end lease include?
The structure typically includes monthly payments, the estimated value of the vehicle at the end of the lease (also called the residual value) and an end-of-lease settlement.
What happens at the end of my open-end lease?
You have options. We can give you a guaranteed price up front or we can remarket the vehicles on your behalf. Depending on your terms, you may be eligible to use our fleet buyback program or extend your terms.
What’s the difference between a closed-end and open-end lease?
Open-end leases have flexible structures that are as close to vehicle ownership as possible, only with the additional benefits of leasing. Closed-end leases set fixed terms, mileage allowances, and return dates before the vehicles are put into service. You will be locked into the agreed-upon stipulations, and there are penalties for turning in vehicles early or going over the mileage allowance. Open-end leases are a popular option because of their flexibility, but closed-end leases can be a better choice for fleets that have low mileage and want predictable payments.
How long will it take receive my vehicles?
Once the contract is signed, you will receive your vehicles within 5 to 7 business days.
How long are your leases?
Merchants Fleet offers leases as short as a few months, up to traditional lease lengths. Our team can help you determine the optimal lease duration for your individual needs.
Smart People. Smart Data. Fleet Management Success
Our fleet consultants have it all — the experience, the skills, and the industry know-how. Add in the data and technology at our fingertips, and you’ve got a team that’s ready and eager to work with clients like you.
Experience what expert knowledge can do for
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