Commercial Vehicle Leasing
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Overview
Commercial vehicle leasing provides long-term leases (2-5 years) of cars, vans, and trucks to businesses for employee and fleet use.
With businesses preferring leasing over ownership and fleet management outsourced, leasing generates revenue of $400,000-$1,400,000+ with 20-35% margins through monthly lease payments.
The business requires vehicle inventory or manufacturer relationships, lease financing and capital, fleet management services, maintenance programs, and corporate relationships.
Services include employee vehicle leasing programs, fleet vehicle leasing, fleet management services, maintenance and repairs, replacement vehicles, and lease-end remarketing.
Revenue through monthly lease payments and residual value management.
Success factors include manufacturer relationships and volume purchasing, lease financing and capital sources, fleet management and telematics services, providing total cost of ownership value, and building corporate fleet accounts.
Marketing focuses on corporate fleet managers, HR departments, and small businesses.
With businesses leasing vehicles for tax and cash flow benefits in 2025, commercial leasing offers B2B opportunities serving corporate fleets with high capital and fleet management expertise barriers.
Required Skills
- Vehicle leasing and finance
- Fleet management
- Corporate sales
- Residual value analysis
- Maintenance program design
- Manufacturer relationships
Pros and Cons
Pros
- Recurring monthly lease revenue
- Corporate and fleet contracts
- Lease-end residual value gains
- Fleet management service fees
- Tax benefits attractive to businesses
Cons
- Very high capital for fleet
- Residual value risk
- Long-term corporate sales cycle
- Maintenance program costs
- Competing with major leasing companies
How to Get Started
- Secure capital for vehicle inventory
- Build manufacturer relationships
- Develop lease financing capability
- Create fleet management services
- Market to corporate fleet managers
- Offer maintenance programs
- Manage residual value and remarketing
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