A closed-end lease, also known as a walk-away or fixed-price lease, is one of the most popular program options at Merchants Fleet Management. This type of lease is an excellent choice for companies and governmental agencies that want to control costs and minimize risk. Unlike an open-end lease, you always know what to expect from a closed-end plan. You never need to worry about market price volatility, rate fluctuations, or seasonal resale influences. Simply sign your contract with Merchants Fleet Management and enjoy a one-stop fleet budgeting solution.
What is a Closed-End Lease?
A closed-end lease puts no obligation on you, the lessee, to purchase your vehicle or fleet of vehicles at the end of the agreement. You therefore do not have to worry about fleet vehicle devaluation or depreciation throughout the term of your lease. This type of lease is often better for the average company than an open-end lease, which comes with a significant degree of risk from ownership. The lessee does not know the total lease cost until the end of the lease term, as it depends partially on value of the vehicle. In a closed-end plan, you’ll know the costs up front. Explore the differences between open-end and closed-end commercial leases.
When you sign a closed-end lease with Merchants Fleet Management, the risks of vehicle ownership remain with us. We do not transfer these risks over to you upon signing the contract. We fix the terms of your lease based on agreed-upon terms our team creates with your help, such as the mileage and condition of the vehicle upon return. If you return your vehicle(s) at the end of your lease term and your actual usage is different than what is in your contract, provisions in the contract allow for adjustments.
Companies often benefit from closed-end agreements as they provide improved cash flow and peace of mind. You only have to pay the difference between the vehicle(s) cost and its residual value – not the other costs of ownership. Fluctuations in the marketplace will not affect the terms of your lease or monthly payments. You avoid the risk of depreciation because you are not obligated to purchase the vehicle(s) at the lease’s end. Merchants Fleet Management helps companies understand which type of agreement is best for a particular set of goals, financial objectives, and fleet needs.
Closed-End Lease Programs with Benefits
Merchants Fleet Management has perfected the closed-end lease, serving the industry for more than 50 years. Closed-end leases programs are an outstanding all-in-one fleet solution we offer to all types and sizes of corporations. Whether you’re a large corporation in need of a fleet of heavy-duty trucks or just require a few four-door sedans or SUVs for your small company, our closed-end program offers a wealth of benefits for you. Advantages of signing with Merchants Fleet Management include:
- Predictable expenses and cash flows
- Personalized fleet programs and customized leasing plans
- Nationwide coverage and roadside assistance
- Bundling options with fuel, insurance, and full maintenance plans
- Flexibility of bundling vehicle wear-and-tear and excess mileage, meaning fewer end-of-lease considerations
- Custom, cost-effective solutions
- Fixed interest rates
- Zero payment variations
- Clearly specified lease terms
- No residual risk
- Potential for the lowest-priced option depending on market resale conditions
Learn more about closed-end leases from Merchants Fleet Management. This leasing option is ideal for many companies looking to sign a contract that doesn’t require ongoing attention. If you want to avoid risks, keep your costs controlled, and know what to expect when you return your vehicle or fleet, a closed-end program is right for you.
Combine a Closed-End Lease with Our Fleet Management Services
When you combine a closed-end lease with our comprehensive fleet management services, you enjoy a one-stop solution to cover virtually all of your fleet needs. This package from Merchants Fleet Management presents a unique opportunity to benefit from unmatched program flexibility, total fleet control, and support from industry experts. We make management easy, giving you everything you need to control your costs and maintain a functioning, efficient fleet. Regardless of your size, budget, and goals, we know we can tailor a solution for you. See our list of management services. Here are three of the many services you can bundle with your closed-end lease:
- Maintenance programs. We offer full or customized programs to assist you with preventative maintenance, roadside assistance, and fleet repairs. Our full, administered, or reserve maintenance options put you in charge of what services you want and help you minimize downtime. We also provide a National Accounts program and custom-built maintenance services. View maintenance programs in more detail.
- Fuel management. This Merchants Fleet Management program can help you monitor fuel expenses, eliminate waste, and reduce costs. You have control over fuel purchases, spending limits, and non-fuel purchases. You can also restrict payment for certain fuel types, such as premium or diesel fuels. TotalView gives you easy access to fuel transactions to help you determine fuel efficiency for every driver in your company.
- Roadside assistance. This important program can make all the difference when one of your fleet vehicles experiences a breakdown. Every driver enrolled in our program can call a toll-free number and receive immediate, 24/7 coverage for flat tires, dead batteries, empty fuel tanks, lockouts, towing, low fuel, collision assistance, and more. We’ll help your drivers get back on the road faster, saving you time and money.
Customize your fleet management program, paying for the exact services you need and none you don’t. Our team of knowledgeable professionals will evaluate your company in detail and deliver customized closed-end lease and fleet management solutions according to your size, budget, and goals.
Contact Us Today to Learn More About Closed-End Leases
Our closed-end lease contracts are just the beginning of what Merchants Fleet Management can do for you. We are a one-stop-shop for all of your fleet leasing, management, and maintenance needs. We’ve helped thousands of businesses improve the safety, productivity, and cost-effectiveness of their fleets. Join our long history of satisfied customers – contact us today. To learn more about a customized closed-end lease, call (866) 653-2737.