Fleet Partners

Key benefits are:

• FleetPartners can save you money through our Pan Tasman purchasing power including vehicle, tyres, service and maintenance
• Free up valuable working captial for investment in your business and remove a depreciating asset from your balance sheet
• Your lease rate is an operating expense and may be tax deductible*
• No residual risk or liability on resale - no exposure to the used vehicle market or unscheduled repairs and maintenance
• There is the possibility of FBT savings based on our buying power that may lead to lower vehicle purchase costs*
• Fixed costs through the lease make it easier to budget
• Substantial workload reduction in your administration/accounting areas
• Pay for most of your fleet running expenses via an easy monthly tax invoice

*Note: FleetPartners are not able to provide tax advice and recommend that customers always seek independent financial advice to understand potential tax implications for their business.

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), whilst assets should be funded separately. 

There are a number of benefits to this approach:

• Interest costs and charges attributable to overdrafts are overall far more expensive than medium term financing
• Selling an existing fleet and leasing it back gives you an immediate cash injection, frees your credit facilities for growth activities or activities that will generate far better returns on capital.  FBT exposure is also potentially reduced 
• When matched with the discounted initial cost and the competitive finance rate, an operating lease is often the most cost-effective means of funding available.

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.

You may have good reasons for removing the vehicles from the balance sheet (such as improving the gearing level that you disclose, or to enhance your overall business performance ratios). 

Key inclusions are:

• Initial registration
• Service and maintenance costs where they are not covered by the manufacturers warranty policy
• Replacement tyres (as per your contract)
• Annual re-licensing for the term of the contract and WOF renewals
• Fuel card purchasing and management (optional) - fuel is an additional cost
• Accident and claims managment
• Roadside assistance (excludes driver fault eg. keys locked in vehicle)
• Courtesy vehicle, free of charge for up to 28 days, in the event of an accident or mechanical breakdown
• Vehicle disposal
• Management reporting for corporate fleets - available on-line or provided in hard copy at nominated intervals
• One monthly lease tax invoice for simple accounting; and one monthly tax invoice for incidentals

A fully maintained operting lease covers most things.  What is 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)

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 requried as a result of accident damage or proven driver misuse.

FleetPartners are 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.

To ensure fair resale value, FleetPartners requires vehicles returned to be in good condition, inside and out and in sound mechanical order with regard to distance travelled and age of the vehicle.

FleetPartners acknowledge that some wear and tear will occur over the period of the lease term and have compiled a guide for vehicles based on whether it is a passenger vehicle, light commercial vehicle or truck.  A copy of the Fair Wear and Tear Guides can be found on this website, under Resources - Form Downloads.

There is a range of lease terms available.  Passenger vehicle leases commonly range from 12 months to 36 months.  Light commercial vehicles such as utes range from 12 to 60 months while heavy commercial vehicles (trucks) can go up to 120 months.

Each term also carries a maximum kilometre distance allowance. However, FleetPartners will consider approving vehicle usage above the standard maximums in some circumstances.

FleetPartners offer four options to manage irregular vehicle usage:

1. Client transfers vehicles with high km to drivers travelling lower km where appropriate to bring usage back into alignment with contract
2. 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 and teh higher monthly rates this would have otherwise incurred
3. Run the vehicle unitl the contracted term is reached under an agreed Excess Kilometer 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.
4. 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. On acceptance of the alternative, a revised vehicle schedule and rental billing is issued.

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 you 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 Econolease:

FleetPartners offer a large range of late model, ex-lease vehicles, on fully maintained operting leases with terms from six (6) months to 36 months. Econolease can provide you with additional FBT savings - please refer to the Econolease product page

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 of off the retail price.  Complete the Drivers Response form on-line with 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 FleetPartnes 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

FleetPartners will consider two types of used vehicles for leasing under the following circumstances:

1. Vehicles from FleetPartners' own returned vehicle stock where we are fully aware of the conditions and the usage of these vehicles. These come under our Econolease product offering
2. Under our Sale amd Leaseback facility, FleetPartners will purchase the existing vehicle/s in your fleet for an agreed value and lease them back to your business under a FleetPartners lease.

FleetPartners are the legal owners of the vehicle however, the vehicle is registered to the customer.  If any fines are recieved by FleetPartners for the vehicle, they are fowarded to the customer for payment.  It is responsibility of the customer/driver to ensure any outstanding motor vehicle infringements are paid promptly to ensure they do not incur any late payment fees.