Managing a commercial vehicle fleet is often better left to a fleet management company. That’s because vehicle fleet management requires constant vigilance to ensure you’re maximizing your value. Knowing whether to choose an open or close ended vehicle lease takes someone who understands the nuances of vehicle fleet management and the benefits of both types of leases.
There are no restrictions on the kilometers you rack up with an open ended vehicle lease. That means your company is not going to be penalized with overage charged for going over your kilometer limit. With the open-ended lease, you are guaranteeing the residual or “buy out" value of the vehicle during the lease term. Most closed end leases have kilometer restrictions with an optional to return the vehicle when the lease expires. If you had a 20,000 km a year restriction over four years and returned the vehicle with 85,000 kilometers, you would pay a penalty on the additional 5,000 kilometers.
Which lease is better for your business? Put your faith in your fleet management company to know what works best for you.