A fully maintained operating lease is a finance contract between an employer and a financier/fleet provider for an agreed term and maximum number of kilometres to be travelled throughout the lease term. At the completion of the lease term, the employer simply returns the vehicle to the fleet provider who bears the residual risk.
The monthly lease repayment includes all vehicle maintenance, registration, insurance (excluding fuel) etc.
Fully maintained operating leases are the preferred option for vehicles travelling high kilometres, predominantly used for business purposes (i.e. sales representatives). As the employer is exposed to greater responsibility, many employers are hesitant to enter into operating leases.
Benefits
- No residual risk
- No finance exposure to the employee
- Known costs of package