Ewald Fleet Solutions offers a variety of fleet financing options to help you improve your cash flow and enhance profitability. After meeting with you to review your current fleet requirements and objectives, we will recommend a plan that’s tailored to your needs and business requirements.
Ewald Fleet Solutions specializes in a variety of lease financing options depending on your situation.
Open End Lease
An open end lease (often referred to as a capital or finance lease) is the most common type of lease for business applications because it offers all of the flexibility of ownership but preserves all of the benefits of leasing.
- Off balance sheet financing
- Improves financial ratios
- Keeps credit lines open for business needs
- Converts the capital expenditure into a monthly expense
- Often reduces up-front sales tax cost
Open end leases require that you assume the residual risk at the end of the lease, but not unlike the risk associated with purchasing and owning a vehicle. Open end lease impose no mileage or condition penalties making them ideal for business applications.
Closed End Lease
Often referred to as a "walk-away" lease, the closed end lease offers particular advantages to lessees who need to minimize risk and prefer a defined termination point of their lease. Simply return the vehicle within the terms of the agreement with regards to mileage and wear-and-tear at the end of the lease agreement with no further financial obligation.
Closed end leases are most commonly used in consumer and government applications. A closed end lease may also be a good option for clients who have low, predictable mileage habits, and are confident that they will not need to terminate the lease prior to the end of the lease term. In a closed end lease the lessee pays for excess mileage and abnormal wear-and-tear, which is often too restrictive for business applications.
One Pay Lease
A one pay lease allows for a single lump-sum payment, rather than monthly payments over the term of the lease. The concept behind a one pay lease is to save money by paying in advance and avoiding interest charges.
Self-funded leases can be designed for companies that prefer to use their own capital while maintaining the financial and administrative features of a standard lease program. This type of financing is the most uncommon.
Contact us today to talk to a fleet specialist about the fleet financing option best suited to your needs.