Leasing

N.Y. County's Fleet Leasing Plan Reduces Costs

August 19, 2015

Columbia County's (N.Y.) supervisors approved a contract with Enterprise Fleet Management to shift to a leased vehicle fleet to reduce maintenance costs and reduce capital outlay.

The county board, which approved the contract Aug. 12, estimates a savings of $325,000 over 10 years, reports the Register-Star.

Enterprise plans to lease the county 24 new cars this year, and sell 24 of the county’s older cars. The proceeds will defray the county’s leasing costs. This process will be repeated every year until the fleet is all leased vehicles.

The program will cost the county an average of between $500,000 and $700,000 a year. For the first five years, the cost will be off-set by equity from the sale of the used cars.

Comments

  1. 1. Dave [ December 07, 2015 @ 12:08PM ]

    Re: Columbia County leasing their fleet.
    I just saw this article for the first time. Nothing against Enterprise Rental, they are a fine company.
    But, I think Columbia County is going to have a surprise.
    The only way Columbia County will save money, is that the Supervisors that made the decision guarantee it, and be held accountable for any miss calculations. ( if there is a negative- the supervisors pay out of their pocket)

    Every rental vehicle company expects (and wants) their vehicles to be returned in show room condition. That means no scratches, dents, and tires in great condition. No marks on the interior etc. etc. Every vehicle I expect will have areas that will have to be repainted, refurbished to standards with good tires, no windshield cracks, etc. etc.
    If the rental company will accept all the vehicles back without repairs and refurbishing they would go broke, unless the cost of the lease agreement pays for the vehicles in the first place including a built in profit.
    That means the lease payments may look good, but you have just paid for the vehicle PLUS.

    Don't say I didn't tell you.

    No rental company would want a vehicle returned in a condition less or they can't sell it.
    If a county vehicle is being sold, you sell it AS IS, there is no cost to refinish, or refurbish them.

    AT an estimated cost of $500,000 to $700,000 a year

 

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