With a softening in the used vehicle market, it’s becoming harder and less profitable for fleets to dispose of their own vehicles when it comes time to retire them out of their fleet and/or upgrade to newer vehicle technology. Yet, an aging fleet puts it at greater risk for CSA violations as well as frequent, unpredictable and costly repairs and sudden breakdowns.
One solution is the Fleet Buy-Out Program from Ryder System (www.ryder.com) – a provider of commercial transportation, logistics and supply chain management solutions. Through this program, Ryder buys a company’s vehicles, and in exchange, the company enters into a full-service lease contract agreement with Ryder.
A lease can be anywhere from three to seven years in duration.
VEHICLE VALUE
“Ryder purchases the vehicles, which usually enables a fleet to receive a higher price for its vehicles than wholesalers can provide,” says Eugene Tangney, Ryder’s vice president, global product manager and asset management. “Ryder can potentially provide a higher value for a fleet’s used trucks because it has a dedicated team of pre-owned vehicle specialists that are able to market and sell vehicles in the wholesale market, as well as the export market, more efficiently than an individual.
“A third-party inspection provides the customer with transparency, which grants them the assurance that they are being treated fairly. Moreover, fleets can utilize Ryder’s 59 pre-owned vehicle centers across North America to find the right buyer for any vehicle.”
BENEFITS OF LEASING
With leasing comes a number of benefits, notes Tangney. Ryder’s leasing programs offer flexibility and handle everything from vehicle specification, configuration, financing and acquisition to fleet maintenance and disposal.
Other benefits include “known monthly payments and predictable operating costs as service and repair needs are covered 100 percent of the time,” he adds. “Newer lease equipment is often more fuel efficient and has a fixed cost each month.
“What’s more, vehicles are kept compliant and in top condition for greater uptime.”
STIPULATIONS
The Fleet Buy-Out Program, available throughout North America, has no limit on fleet size. Ryder will accept any number of trucks – whether it’s one, a dozen or hundreds. Nor are there any restrictions on equipment age, mileage or physical condition.
Participation in the program requires a one-to-one ratio, Tangney explains. For every vehicle Ryder buys, the customer must replace it with a Ryder lease vehicle.
However, the program does not require a fleet to obtain like-for-like equipment. Tractors can be replaced by straight trucks, or daycabs can be exchanged for sleepers. “It is whatever equipment fits the customer’s needs,” he says.
