Leasing Gains Popularity

Rich Corcoran, vp-national accounts for Idealease, says many fleets are expressing more interest in leasing their equipment as high diesel fuel prices and other rising operational costs are putting pressure on their capital budgets.

“The biggest advantage with leasing is that there’s usually no down payment required for a fleet to get equipment,” Corcoran told Fleet Owner. “If there’s not enough room in the capital budget to purchase equipment, fleets can use leasing to fill the gap – and with the low interest rates out there today, from a budgetary standpoint, that’s a great deal.”

At a ride-and-drive hosted by International Truck & Engine Corp. outside Dallas, last week, Corcoran said leasing is trending upward even among private carriers, which comprise the traditional “core” market for truck leasing.

“About 60% to 65% of private fleets use leasing now, especially larger fleets that don’t want the overhead involved with operating trucks,” he said. “People involved with private carriage recognize that transportation costs are the third to second highest cost of operation – especially in terms of the high fuel prices today – so leasing is definitely getting a strong second look