Heavy Duty Trucking, March 2020
LEASING Lessors say they are TO THE RESCUE applying technological and management savvy to bring down the cost and risk of operating trucks and trailers for more customers than ever upgrade fleets with advanced technologies the studys authors note And the high initial costs uncertainty over residual costs and rapid technological changes in alternate fuel segments are making leasing attractive for fleet managers In addition they find that last mile innovations are driving truck demand in the regional haul and urban delivery segments with a large number of these fleets preferring full service leasing to focus on their core competencies The study shows that operational fullservice leasing will experience a 64 and 72 compound annual growth rate during the 2019 2025 timeframe in the Class 4 7 and Class 8 segments respectively Full service leasing will win out where fleets try to reduce the amount of capital tied to non core assets avoid residual risk and constantly upgrade to newer vehicle models On the other hand finance leasing will be favored where fleets require greater control over asset utilization and can handle disposal with expertise in remarketing All these findings track seamlessly with what executives at several major full service lessors and at a provider of equipment financing and business intelligence tell HDT are the major forces growing full service leasing Collectively they describe the winds driving leasing forward in 2020 as being stirred By David Cullen Executive Editor dcullen@ truckinginfo com s 2020 unfolds all sorts of market drivers are pointing to this being a very good time to be leasing and renting trucks and trailers And the lessors of that A equipment might argue that those same forces are making what they offer more valuable than ever to fleet operators The rental and leasing market for mediumand heavy duty truck sales in North America is expected to expand at a compound annual growth rate of 54 from 2019 to 2025 Thats according to a recent study by marketresearch firm Research and Markets which points to several factors strongly favoring leasing as a truck financing method Along with meeting customers financial and operation requirements these chiefly include concern about yearly total mileage desired replacement cycle and duty cycle influence on wear and tear More specifically the study points to how fleets are turning to advanced safety technologies to help boost Compliance Safety and Accountability CSA scores and cut insurance premiums Of course theyre doing that while also dealing with more complex low emissions diesel engines or natural gas and even electric trucks to attain sustainability goals Leasing enables fleets to constantly HDT MARCH 2020 52 WWW TRUCKINGINFO COM PHOTO PENSKE Leasing takes the highs and the lows out of costs for fleets and does it from the front end to the back end says Penskes Jim Lager
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