When you choose for operational lease, you are not buying the truck or trailer, but you buy the use of the vehicle for a fixed period of time. You do not have to worry about residual values, because at the end of the lease period, PACCAR Financial is responsible for the vehicle.
You can choose several options to include in your lease, in this way; you invest in your company, while limiting the payments and risks. The residual value and lifecycle risk is taken by PACCAR Financial, as well as the disposal. Operational lease is fiscally considered “off-balance”, the instalments are at the expense of your Profit & Loss account, which can often lead to better financial ratings.
Main characteristics of Operational lease:
- Rental agreement with a fixed duration (determined by the yearly kilometres and economic lifecycle)
- Fixed monthly payment of depreciation and interest
- PACCAR Financial is economical and legal owner of the vehicle.
- Duration is no more than the economical lifecycle, vehicle will be written down to a substantial residual value (local laws apply)
- Vehicle on the balance sheet of PACCAR Financial
- Can be extended with additional services (such as repair & maintenance)
Main advantages of Operational lease:
- No purchase obligation
- Less administrative burden compared to outright purchase
- Many operational costs can be included in the contract
- PACCAR Financial bares the risk of value depreciation (residual value, lifecycle) and disposal
- Does not affect the balance sheet (“off balance”), therefore no negative effect on your solvency
- Monthly lease payments can be deducted from your operational result
- Less restrictions on credit facility with your bank