There’s more to fleet management than simply getting your clients the vehicles they need. That’s why we have multiple EV adoption options available as part of our one-size-doesn’t-fit-all philosophy to electric vehicles.
There’s more to fleet management than simply getting your clients the vehicles they need. That’s why we have multiple EV adoption options available as part of our one-size-doesn’t-fit-all philosophy to electric vehicles.
A large utility company was conducting business on a contract basis. While some contracts lasted a matter of months, others were extended for years. To accommodate for this, the company had a mix of long-term leased assets and rental units, but the rental units cost almost twice as much as a leased asset.
Merchants was able to put a rent-to-lease option in place so the company could easily convert rentals to long-term leases once contract positions were solidified. When a contract was secured, the company used Merchants ReadyFleet, a pool of vehicles ready and available for immediate short-term rental, to source a secure a vehicle within days. These vehicles were then converted to long-term leases when a contract was extended. The company incurred a depreciation credit for each month a vehicle was rented that was applied to the cap cost at conversion, which further lowered the long-term lease payment. Rentals that were no longer needed were simply returned to Merchants at no extra cost.
The company is on track to save nearly $100,000 annually in lease payments, plus $853,000 annually in rental vehicle cost avoidance. In addition, they have mitigated administration from rental vehicle turn-ins and lease on-road activities.