The lifecycle of fleet vehicles
3 min to readFleet Management
Operational leasing, also known as long-term rental, is an increasingly popular vehicle financing solution for corporate cars. This structure offers numerous advantages, and involving a fleet management company significantly reduces the burden on the lessee. Below, we outline the seemingly complex phases of long-term leasing, demonstrating how simple and transparent the process actually is.
Operational leasing, also known as long-term rental, is an increasingly popular vehicle financing solution for corporate cars. This structure offers numerous advantages, and involving a fleet management company significantly reduces the burden on the lessee. Below, we outline the seemingly complex phases of long-term leasing, demonstrating how simple and transparent the process actually is.
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- Fleet planning
- It is advisable to consult with a fleet management company during the planning stage, as cost efficiency is one of the most important aspects of selecting corporate vehicles.
- With operational leasing, the vehicle remains the property of the fleet management company, allowing the lessee to acquire it VAT-free. Moreover, for vehicles used for both private and business purposes, at least 50% of the VAT on the rental fee is reclaimable, which results in significant savings under standard conditions.
- Every lease agreement is preceded by a risk assessment, during which the fleet management company evaluates the company’s business performance, as well as the value, model, and monthly cost of the selected vehicle.
- Vehicle selection
- When selecting vehicles, several practical factors must be considered, such as the intended purpose, whether the vehicle will primarily be used in urban environments or for long-distance travel, the expected mileage, and the preferred fuel type.
- It is also essential to review the Total Cost of Ownership (TCO), which includes all anticipated costs beyond the monthly fee, such as fuel expenses, to get a comprehensive picture of the vehicle’s associated costs.
- The monthly fee is influenced by the residual value—the estimated value of the vehicle at the end of the lease term—and the service package accompanying the vehicle.
- Additional considerations may include brand preferences, industry trends, environmental considerations, and the equipment level of the preferred model.
- Calculation
- Our website features pre-packaged offers showcasing models with ideal configurations at favorable prices.
- The fleet management company calculates the monthly fee based on specific dealership offers, which often include discounts due to partnership agreements.
- Factors influencing the monthly fee include the number of vehicles, the investment value of the selected models, the determined residual value, the level of equipment, and the associated basic services, such as seasonal tire changes, maintenance services, mandatory insurance, CASCO coverage, and roadside assistance for technical breakdowns or accidents.
- Order
- After accepting the calculation and placing the order, delivery times may vary depending on whether the vehicle is in domestic stock (typically available within 3–4 weeks) or is custom-built with specific configurations (usually requiring 3–4 months for delivery).
- Delivery
- During vehicle delivery, the dealership provides an overview of the vehicle’s technical features and functions.
- With the assistance of our customer service representatives, this information is also available electronically, and hardcopy manuals are included in the vehicles.
- Operation
- The long-term lease period typically spans 3–4 years.
- The monthly fee covers not only the vehicle usage but also the related services.
- Our online management system, My Ayvens (My ALD for ALD Automotive vehicles until the full legal and IT merge), significantly simplifies vehicle usage and is also available as a mobile application. It offers full administrative support, including seasonal tire changes, maintenance, incident reporting, and additional services.
- Return
- At the end of the lease term, the lessee has no risk.
- As the lease period concludes, decisions must be made regarding the future of the vehicle, for which we provide expert guidance and prepare the client for the return process. Vehicle returns are conducted at our designated drop-off locations.
- A handover report documenting the vehicle’s condition is prepared and an independent expert then conducts a condition assessment.
- If desired, the lessee may extend the lease on the current vehicle.
- If a new vehicle is preferred, it is advisable to coordinate with the Ayvens representative in advance to ensure a seamless transition.
Published at January 29, 2025
January 29, 2025
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