by NationaLease San Diego | Sep 12, 2019 | Full Service Leasing
NationaLease was founded in 1944 by a group of independent 17 truck leasing companies who came together as a new organization, National Truck Leasing System.
Their combined efforts help the company grow and by 1949, just 5 years later, they were 25 affiliates serving 135 cities.
By 1955, their number of affiliates reaches 57 with 20,000 leased trucks as part of their leasing system.
In 1961, the first National Truck Leasing System franchise was introduced and 4 year later, in 1965, NationaLease was born.
In 2006, AmeriQuest merged with NationaLease to bring the number of locations to over 700.
Today, NationaLease has grown to over 900 locations in the United States and Canada. The combined customer fleets is more than 155,000 trucks, trailers, and tractors.
NationaLease has a wonderful electronic photo album of old model trucks, NationaLease members and locations throughout the years. Take a historic look at the journey of NationaLease from 1994 to 2019.
Happy Anniversary NationaLease. We are proud to be part of the team! Visit us online or contact us.
NationaLease of San Diego
www.nationaleasesd.com
(800) 736-3443
by NationaLease San Diego | Aug 29, 2019 | Full Service Leasing
Here is the 3rd and final installment in our series on the advantages of a full-service lease program. NationaLease San Diego can provide the equipment, service, and support associated with a quality lease program. Part 1 discussed the tax and maintenance benefits of leasing, and part 2 talked about the cultural shift in delivering goods and workforce issues that can affect buying decisions. Here are some last thoughts to consider when deciding on the best program for your business.
Financially speaking, the math has changed as a result of the tax cuts. Maintaining any fleet is becoming more complex amid so many new and continuously evolving technologies. What it all means: Fleet management has enough daily disruptions and cannot afford the loss of focus needed to manage the day-to-day headaches of full fleet ownership and operation.
Through leasing, customers receive the full benefit of using their truck without the exposure, effort and variability of ownership. They can rely on a provider’s network of facilities and highly trained technicians for vehicle maintenance. Leasing providers can also counsel their customers through mazes of current and emerging regulations in areas such as tax reporting, spec optimization and regulatory compliance.
This by no means is to say that there are no advantages to ownership. Rather, the point is that amid new tax rules and so many fundamental changes in the industry, fleet owners and managers need to revisit their lease vs ownership equations. For the reasons stated—and many others—the needle is moving in favor of fleet leasing.
NationaLease San Diego can tailor a program for your business designed to take advantage of all the benefits explained in these articles. Give us a call and let us answer any questions you have on all our available programs.
In case you missed part 1 or 2, here are links to the articles:
Advantages of Fleet Leasing… Part 1
Advantages of Fleet Leasing… Part 2
NationaLease of San Diego
www.nationaleasesd.com
(800) 736-3443
by NationaLease San Diego | Aug 21, 2019 | Full Service Leasing
We present part 2 of our 3-part series on the advantages of a full-service lease program and how C&M Motors can provide a plan that will fit your company’s requirements. Part 1 discussed the tax and maintenance benefits of leasing. Here are a couple more things to consider when acquiring a new truck for your fleet.
Leasing Advantages
Disruption:
Besides the tangible advantages like financial and maintenance, cultural changes can affect your decisions. It starts with customer expectations: Today’s consumers want goods delivered “yesterday,” and that mentality is forcing a re-thinking of routes and warehouses. In general, sellers are finding it essential to move goods even closer to end-customers.
But the drivers of disruption quickly expand to include the emergence of technologies such as Internet of Things (IoT)/telematics, artificial intelligence (AI) and machine learning. Operating behind the scenes, these solutions are driving further change in strategies and day-to-day decision making. Transportation fleet owners must also begin thinking about the roles of hybrid and all electric vehicles. Changes of this magnitude, amid so many unknowns, would tend to favor leasing, as businesses cannot afford to be locked in by ownership.
Workforce:
A related issue favoring leasing over ownership is worker shortages. This issue is well reported in the press, but a Forbes Insights survey also showed that respondents are experiencing significant shortages in drivers, diesel mechanics and warehouse workers. This is yet another reason to outsource such challenges to specialist organizations, such as full-service lessors.
Driver shortages are particularly acute, forcing transport businesses to focus ever more acutely on retention and recruitment. A key element of driver satisfaction is the condition and quality of the fleet of trucks. Drivers tend to be happier when operating newer and better maintained trucks. Again, leasing can be an easier means of ensuring an up-to-date and well-maintained fleet that helps support driver retention.
In case you missed part one, here is a link to the article:
Advantages of Fleet Leasing… Part 1
Stay tuned for the third installment of the advantages to leasing. If you have any questions, feel free to give us a call.
NationaLease of San Diego
www.nationaleasesd.com
(800) 736-3443
by NationaLease San Diego | Aug 16, 2019 | Full Service Leasing
When acquiring a new truck for your fleet the question of lease vs. purchase is an important one. Trends are shifting towards full-service leasing. This is our first installment of a 3-part series on the growing advantages of a lease program and how NationaLease San Diego can facilitate that.
Operating a commercial truck fleet has always been challenging, and it’s getting more so with advancements in vehicle technology. Today’s commercial trucks are increasingly filled with advanced digitally connected engines, emissions control systems and onboard technologies. Soon we will have more trucks powered by electricity, hydrogen and natural gas.
With all these choices, fleet owners are looking at various operating models and evaluating the benefits of leased, owned or blended fleets to meet their business needs. Some of the initial questions that come to mind for any transportation-focused businesses are: lease vs. buy/own? Which is the most cost-effective approach to asset acquisition and management? What variables need to be considered?
On average, large businesses lease approximately 35% of their fleets, according to a recent Forbes Insights survey of more than 400 executives. But big changes in both tax rules and the nature of logistics, supply chain, and transportation are tipping the scales further in favor of leasing, meaning that figure is set to increase.
Leasing Advantages
Tax Advantages:
One of the key benefits of ownership is the ability to write off interest expense. But the Tax Cuts and Job Reform Act (TCJA) reduces the corporate tax rate from 35% to 21%, which means that most businesses will have more cash flow available to acquire more vehicles. Yet by the same token, the value of interest expense write-offs will be diminished.
Another advantage of ownership is the right to claim depreciation, and indeed the TCJA enables 100% depreciation of new and “new to you” used assets. But again, the value of this benefit is diminished by a lower tax rate.
Finally, the TCJA introduces a cap or limit on interest expense deductions. That is, write-offs are limited to a total of 30% of EBITDA, which means that certain highly leveraged organizations, often the sort that are experiencing high growth, will be unable to access the full value of any write-offs. This limitation will become even more restrictive post-fiscal year 2022 when EBITDA is replaced by EBIT.
All of this introduces new math to any lease vs purchase calculations. And as a rule of thumb, the longer the duration, the more attractive leasing becomes. Contracts with terms of five or more years will tend to strongly favor leasing.
Maintenance:
Changes in technology have increased dramatically in the last several years. Today’s trucks are equipped with a vast array of technologies from telematics devices to sophisticated safety features. Increasingly, fleet owners will see the advantages of incorporating electric or natural gas-powered trucks and delivery vehicles into their fleet mix. Innovations and advances are occurring with every model change. Individual fleet operators, it only stands to reason, will find it increasingly difficult to keep up with the maintenance of so many advanced systems as well as the shortage of trained technicians required to maintain current and emerging vehicles. With a full-service lease program from NationaLease San Diego, the maintenance is part of the package.
Stay tuned for the next installment of the advantages to leasing. If you have any questions, feel free to give us a call.
NationaLease San Diego
www.nationaleasesd.com
(800) 736-3443
