Fleets Look to Leasing to Cut Costs

Fleets across the country are looking into leasing contracts for some or all of their fleet vehicles in an effort to reduce fuel and maintenance costs and improve service.

Orange County, N.Y., has signed a contract to lease vehicles through Enterprise Fleet Management. It expects to save about $250,000 over the five-year contract term, reports the Hudson Valley News Network. With this contract, the county expects reduced operational costs, including maintenance and fuel, and a lowered vehicle lifecycle from 20 years to five.

This year, the county will lease 25 to 30 new vehicles for various departments, and proceeds from the sale of older vehicles will be allocated to the cost of leasing. Orange County's entire fleet would be replaced with leased vehicles by 2021.

The City of Bainbridge, Ga., signed a similar contract to replace its utilities fleet with leased vehicles. The city has already received 16 new vehicles through the contract, replacing 20 vehicles that had an average age of 24 years. By contracting out maintenance for its utilities vehicles, the city's mechanics can focus more on maintaining heavy vehicles such as garbage trucks and road graders, reports The Post-Searchlight. The city expects to save $135,000 over ten years.

The City of Amsterdam, N.Y., Common Council approved an open-ended master lease agreement, which will allow the city to consistently replace its Public Works Department's light- and medium-duty vehicles, reports the Recorder. With this approval, the city will now work with Enterprise to determine a replacement plan. The open-ended lease will hold no mileage restrictions of wear and tear charges. If the first year is successful, it may add the police and fire departments to the agreement.