Operating Lease is exactly how it sounds like. An Operating Lease is a type of lease in which the company or organisation leases the vehicle whilst MASCO leasing retains ownership. Under an Operating Lease there is no predetermined “residual” value to pay as ownership does not automatically pass to the customer at the end of the term. The automotive lease allows people to use an the automobile without having to make the substantial investment involved in actually buying it.
An operating lease is particularly attractive to companies that continually update or replace equipment. They want to use equipment without ownership, but also want to return equipment at lease-end and avoid technological obsolescence. An operating lease usually results in the lowest payment of any financing alternative and is an excellent strategy for bypassing capital budgeting restraints.
The leasing company assumes the residual value risk on the vehicle, not the client.
Under the operating lease/rental option, the customer has more flexibility at the end of the term, as they may:
* hand back the equipment and upgrade
* continue to rent the equipment
* offer to purchase the equipment at fair market value
* Install Stickers/ Corporate Logos on their fleet for short term
Along with the lease payment, the running costs for the vehicle can be bundled together by our in-house fleet management team. We manage the lease payments, service, tyres, insurance and registration. All you will pay is for fuel.