D&M Leasing Presents: Types of Leases for Small Fleets

Texas-based D&M Leasing has guided business customers through the leasing of small automotive fleets since 1976. D&M Leasing specializes in fleet leasing from as few as five vehicles up to 100 or more, offering competitive pricing to fleet managers across the United States.

Leasing makes it possible for a business to acquire the vehicles it needs without requiring a huge capital investment. Leasing has low up-front costs, and lease payments are typically lower than purchase payments, which also helps a company’s cash flow.

Fleet leases are classified as either closed-end or open-end. Closed-end lease agreements have set lease terms and a predetermined return value at the end of the lease. Closed-end leases also have mileage limits on the vehicles, with a per-mile fee assessed for exceeding the limit. With open-end leases, there are no mileage limits and the residual value of the vehicle is adjusted at the end of the lease. If the actual value of the returned vehicle is less than the projected value at lease signing, the lessee pays the difference.

The leasing professionals at D&M Leasing can help fleet managers understand the lease options available.