FAQs
Still have questions about Fleet Management? Read over our helpful FAQ's
or Contact Us and we can answer any questions you may have.
Are your credit facilities fully utilised?
Funding vehicles and other assets can tie up a significant portion of your available credit facilities. The best use of an overdraft may be for day-to-day transactions (such as buying stock which is able to generate profit), while assets should be funded separately.
What are the benefits of an Operating Lease for a small fleet?
Key benefits are:
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FleetPartners can save you money through our Pan Tasman purchasing power on vehicles, tyres, service and maintenance
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The ability to free up valuable working capital for investment in your business and remove a depreciating asset from your balance sheet
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As an operating expense, your lease rate may be tax deductible*
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No residual risk or liability on resale - no exposure to the used vehicle market or unscheduled repairs and maintenance
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There is the possibility of FBT savings based on our buying power that may lead to lower vehicle purchase costs*
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Fixed costs through the lease make it easier to budget
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Substantial workload reduction in your administration/accounting areas
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Pay for most of your fleet running expenses via an easy monthly tax invoice
*Note: FleetPartners is not able to provide tax advice and recommend that customers always seek independent financial advice to understand potential tax implications for your business.
Do you want to capitalise vehicles on your balance sheet?
Since vehicle ownership rests with the leasing company, operating leases don't show on your balance sheet. Lease payments are treated as an expense, making your vehicles simply a cost of running the business rather than a depreciating asset.
There are good reasons for removing the vehicles from the balance sheet. These include, improving the gearing level that you disclose, or to enhance your overall business performance ratios.
What does the monthly rate for a fully maintained Operating Lease cover?
Key inclusions are:
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Initial registration
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Service and maintenance costs where they are not covered by the manufacturers' warranty policy
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Replacement tyres (as per your contract)
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Annual re-licensing for the term of the contract and WOF renewals
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Fuel card purchasing and management (optional) - fuel is an additional cost
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Accident and claims management
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Roadside assistance (excludes driver fault eg. locking your keys in the vehicle)
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Courtesy vehicle, free of charge for up to 28 days, in the event of an accident or mechanical breakdown
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Vehicle disposal
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Management reporting for corporate fleets – available on-line or provided in hard copy at nominated intervals
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One monthly lease tax invoice for simple accounting; and one monthly tax invoice for incidentals
What costs are not covered in an Operating Lease?
A fully maintained operating lease covers most things.
What it does not cover is:
- Fuel and oil
- Road user charges where a vehicle runs on diesel
- Damage and repairs that fall outside our fair wear and tear policy
- Insurance
* There are no hidden costs - provided the vehicle is returned to FleetPartners at the end of the nominated lease term within the contracted mileage and in good condition (refer to FleetPartners fair wear and tear guide for clarification).
What is covered under maintenance?
The following is covered under maintenance:
- All manufacturers scheduled services
- All non-scheduled maintenance as a result of normal wear and tear, such as brakes, battery replacement, transmission, electrical faults, exhaust, muffler and wheel alignments, etc
- A nominated number of replacement tyres
FleetPartners will cover all repairs and maintenance except for repairs/maintenance required as a result of accident damage or proven driver misuse.
What options do I have if I want to terminate my lease?
FleetPartners is aware that from time to time customers are faced with having vehicle/s in their fleet that become surplus to their requirements or circumstances change.
An early termination fee is based on a percentage (as stated in the vehicle schedule) of outstanding rentals and the vehicle being returned to FleetPartners in acceptable condition, plus any pro-rata excess kilometre usage. In the event of early termination, no usage tolerance will apply and the allocated kilometre ceiling limit will be recalculated on a pro-rata basis to reflect the reduced lease term.
The other option is to transfer the contract to another user under a FleetPartners Novation. Any refurbishment costs to return the vehicle to the fair wear and tear standards is the responsibility of the current lessee and as long as the new lessee meets FleetPartners credit criteria, no termination costs will be charged to the current lease holder.
What is fair, wear and tear?
To ensure fair resale value, FleetPartners requires vehicles to be returned in good condition, inside and out, and in sound mechanical order with regard to distance travelled and age of the vehicle.
FleetPartners acknowledges that some wear and tear will occur over the period of the lease term and has compiled the following Fair Wear and Tear Guides:
- Passenger Fair Wear and Tear Guide
- Light Commercial Fair Wear and Tear Guide
- Commercial (Truck) Fair Wear and Tear Guide
- Materials Handling Fair Wear and Tear Guide
How long is a lease contract?
There is a range of lease terms available. Lease terms typically range up to 48 months for passenger vehicles, 60 months for light commercials and up to 120 months for trucks, trailers and forklifts.
Each term also carries a maximum kilometre distance allowance. However, FleetPartners will consider approving vehicle usage above the standard maximums in some circumstances.
What happens if there is a difference between actual usage and contracted vehicle usage?
FleetPartners offers four options to manage irregular vehicle usage:
- You transfer vehicles with high km to drivers travelling lower km where appropriate to bring usage back into alignment with contract
- Return the vehicle to FleetPartners when it reaches its contracted term, pay the relevant rental adjustment and order a new vehicle. The new lease can then reflect a more accurate usage. The rental adjustment, calculated as per your Vehicle Schedule, takes into account the difference between the higher usage and the higher monthly rates that would have otherwise incurred
- Run the vehicle until the contracted term is reached under an agreed Excess Kilometre allowance. The charge for this additional usage will be billed to you upon returning the vehicle to FleetPartners. Note: the Excess Kilometre facility is only available where the excess usage will not exceed the agreed km.
- Modify the current lease: you can request a lease modification at any time. Your FleetPartners Account Manager will then provide a quote for modifying the lease in line with a revised km limit/term. When you accept the alternative, a revised vehicle schedule and rental billing is issued.
What options do I have at the end of a lease?
Depending on the original lease term you have selected, you have the following options available to you:
Replace your current vehicle:
Discuss with your Account Manager three months out from the end of your current lease, what replacement options are available. Your Account Manager will be able to provide you with an update on all the latest makes and models and the most cost effective lease options to meet your needs.
Extend your current lease:
If you would like to continue driving your existing vehicle, you may be able to extend your lease, based on the lease term to date, vehicle's age and odometer usage.
Simply call your Account Manager and request a quote based on the term of the extension available and the additional vehicle usage required.
Replace your current vehicle/s with an EzyDrive:
FleetPartners offers a large range of late model, ex-lease vehicles, on fully maintained operating leases with terms from seven (7) months to 36 months.
EzyDrive can provide you with additional FBT savings.
Purchase your vehicle:
All drivers, their families and friends, have the opportunity to purchase the vehicle at lease end, as is, where is. By taking advantage of this offer, you will not only be purchasing a vehicle that you know, ie. service history, but you could save thousands off the retail price.
Contact the team at Driver Sales with your odometer reading and our Drivers Sales team will calculate the purchase price for you.
Non-renewal of lease:
All vehicles are to be returned to our independent vehicle assessment partners at Turners Auction centres. Here, trained Turners staff will complete an assessment of your vehicle in line with FleetPartners’ fair, wear and tear guide. A report is then forwarded to FleetPartners together with photographs, and a copy sent to your company together with a refurbishment cost. Any discrepancies should be discussed with your Account Manager within 48 hours of receipt.
How can I place a second hand vehicle on a FleetPartners lease?
- Under our Sale and Leaseback option, FleetPartners will purchase the existing vehicle or vehicles in your fleet for an agreed value and lease them back to your business under a FleetPartners lease.
What happens If I get a parking or camera infringement?
FleetPartners is the legal owner of the vehicle, however, the vehicle is registered to you as the customer. If any fines are received by FleetPartners for the vehicle, they are forwarded to you for payment. It is your responsibility to ensure any outstanding motor vehicle infringements are paid promptly to ensure they do not incur any late payment fees.
What exactly do we mean by “days unavailable”?
Here are some examples:
- The car must have been unavailable for the whole day (midnight to midnight) to qualify as unavailable.
- Parking the car at your employer's premises, handing the keys to your employer (thus leaving your vehicle unavailable to drive) when you are away on business or on holiday constitutes days unavailable.
- If your car is being repaired for 3 days, only one day is considered unavailable as you would have to drive the car to the repairer’s on the first day, and home again on the third.
- Leaving your car at the airport whilst on a business trip when you have the keys does not constitute days unavailable.
- Routine repairs or maintenance lasting 1-2 days does not constitute days unavailable.
- Being unable to drive your car while convalescing from a work injury does not constitute days unavailable, unless you organise for the vehicle to be stored away from your residence and your associates do not have custody or control of the vehicle.
How much will leasing a vehicle save me over owning it?
There are two parts to this answer.
Firstly, there are cash savings. As FleetPartners purchases, services and manages thousands of vehicles across New Zealand and Australia, we buy at great prices. This means when you lease a vehicle from us you are spreading a lower cost over the life of the vehicle. This leaves your own cash or credit facilities intact and ready to invest back into your business to get a return. Taking this into account leasing could save you thousands of dollars per vehicle.
The second area of saving is that a Fully Maintained Operating Lease reduces the hassle and administration of running vehicles. It simplifies buying, selling, servicing, managing and fuelling a vehicle, freeing up valuable time for you to focus on your business.
Find out how much you can save circumstances by calling 0800 360 960 or send us an enquiry.
What happens at the end of the contract and i’ve done more or less kilometres than i thought?
This shouldn't happen because we monitor your usage for you and let you know when you are under or over your contracted kilometres. We then adjust your contract to ensure you get back on track. If you accept our recommendation, you will not receive a charge for being over - even if you are
If i have an accident, do I have to sort it out?
This is a traumatic event and with one phone call we can take care of everything from advising you as the driver on the scene as well as handling all the necessary documentation, to the repair process and handing the keys back to you.
We even liaise with the insurance firm and arrange the repair estimates, as well as manage the repair agent to ensure the downtime is kept to a minimum.
Why would I want to have my maintenance costs budgeted?
We set a fixed budget that will be lower than your current variable costs and take away the risk of you having to pay more than you expected. This helps you with cash management, and to avoid surprises. You’ll also benefit from lower labour costs and higher discounts for parts.
As long as the vehicle is serviced according to the supplier’s recommendation, the costs are taken care of.
What happens if I need to extend the term?
We have flexibility in our lease terms.
Before the end of your contract you'll be asked whether you want to replace the vehicle or extend the contract. If you would like to hold on to the vehicle because the kilometres are low or you're undecided, we'll recalculate your rental and reduce your ongoing cost over the extended life of the lease.
Is it cheaper to repair an aging fleet rather than replace it?
While you’ve invested in the right fleet for your business, there is a tipping point, when the repairs become unsustainable or when vehicles are under-utilised.
With a FleetPartners fully maintained operating lease or fleet management option, you remove the risk of managing depreciating assets, and we will take care of compliance, registration, repairs and reporting for you. This leaves you with more time on your hands and more cash in your pocket.
Find out how FleetPartners can help you and your business today.
Call us 0800 360 966 or find out more on Fully Maintained Operating lease or Fleet Management or send us an enquiry
Does owning my fleet makes better economic sense?
By making the choice to own your fleet, you will be fully aware of the depreciation you have already incurred. But add to that the servicing and maintenance costs of managing an aging fleet and you could be tying up capital that could be better spent in other areas.
With a FleetPartners Sale and Leaseback we can buy your vehicles and lease them back to you on a fully maintained basis. This removes any future risk and because they have been previously owned, you could unlock substantial reduced FBT obligations.
Find out how much your fleet is worth today.
Call us on 0800 360 966 to find out more, or send us an enquiry.
Does leasing mean I have to sign up to a long term contract?
If you only need to fill a short term requirement, signing up to a contract for a minimum of 36 months doesn’t make sense.
However, if you only want a vehicle for a short term and want to get more, save more but pay less, FleetPartners EzyDrive offers you a large range of pre-leased fully maintained, low kilometre cars, light commercials or trucks at a reduced cost and lower FBT rate than a new vehicle.
Talk to us about a free no-obligation quote today.
Call us on 0800 360 966 to find out more, or send us an enquiry
Why lease? at least if I own my company vehicle, I can get something back when I sell it.
Leasing gives you the option of upgrading to a new vehicle every three years, and transfers the risk of managing a depreciating asset. Plus, you get access to additional discounts through the scale of buying power, and can improve your bottom line by not having your cash tied up in depreciating assets. Talk to us today about how a FleetPartners lease, management, or finance option could work for you and what you want to achieve. Call us on 0800 360 966 or send us an enquiry to find out what type of lease might be best for your business.