There is a market need for customizable leasing and maintenance options. Ryder’s Scott Mishoe lays out why that is and which options business owners are looking for.
To own or to lease? That is the burning question many fleet operators face as their businesses begin to expand. A full service lease is the perfect fit for many, as it enables them to hand over the transportation reins to a third party that is an expert at managing vehicle procurement, maintenance, and disposal. For some, a full service lease enables them to redirect their full attention to their business and gain peace of mind. Believe me, with all the resale market uncertainty (tried to sell a used vehicle recently?) and maintenance challenges, you can understand why there seems to be renewed interest in this product.
On the flip side, market research indicates that there are many private fleet owners who have opted out of outsourcing their fleet operations due to a lack of flexible options. For some, they might have to make potentially drastic changes in the way they operate. If they’re not prepared to abandon their longstanding maintenance infrastructure, for example, then they might not be willing to commit to a full service lease. But, if they had the option to keep a portion of it, or perhaps all of it, they might be more inclined. For these private fleet owners, the ability to choose and retain some level of control in the way they handle their fleet is key.
This is where new product offerings that provide more flexibility come into play, enabling customers to decide the terms of their lease alongside the level of maintenance they prefer—from total bumper-to-bumper coverage to pay-as-you-go maintenance, accessed only when and where they need it. Having this kind of flexibility helps remove some of the barriers, that up until now, have kept private fleets from outsourcing their transportation functions.
Just as business owners face different challenges and growing pains, so too do they possess unique transportation wants and needs, as well as different fleet management styles. This presents a market need for which customizable leasing and maintenance options provide a viable solution. If iPhone consumers have options when it comes to making their phone purchases—from color, to storage and size—then business owners looking to outsource their fleet management should also have the ability to choose when it comes to:
If you once thought the approach to fleet leasing was a bit too “one size fits all” for your business needs, now might be the best time to consider revisiting the conversation.
What are the things you find most useful when working with funding sources? What do you find least useful? Paul Burnham: Funders, please let the TPO [third party originator] know how important they are to the organization. Answer the phone... read more
What was the biggest challenge your team faced last year and how did you overcome it? Tom Depping: This biggest challenge has been growing in a highly competitive environment. To counter this, we chose to expand our existing markets but... read more