LEASE FEE - RELATIVE IMPORTANCE OF INTEREST RATE

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Written by Administrator
Thursday, 23 July 2009 06:49
Does the lease fee interest rate really matter for the lessee under an operating fleet lease arrangement?

The interest rate becomes a relatively minor component in a Fleet Leaing arrangement. The important aspcets are;
  • the relative value of the vehicle at the END of the lease period,
  • the way the Lessee takes care of the asset during the lease period, AND
  • the administrative efficiency fo the Lessor.
A significant portion of the SAVING which the corproate makes under a leasing arrangement is in administrative ease and time savings!