Fleet Track Start-Up Costs Leasing Vs. Purchase

Many of the larger GPS service companies are providing lease purchase options, which combine hardware, gps service and installation costs under one “low” monthly payment. Leasing equipment and service is an option many companies like to use, because of the low start-up costs. We recommend always breaking down the exact costs over the term of your lease, to see what you are ultimately paying.

Here are some things to be aware of when leasing:

With a lease are financing your purchase, so you are paying interest on your “lease” payments.

The hidden cost of leasing. Here is an example of a company charging $45 per month per vehicle on a lease over a 36 month term. Your total cost for hardware, service and installation is $1620.00 per vehicle over the lease term.

Using our G5 system as an example, here is what your total costs are on a purchase:

G5 Hardware – $349.00
36 Months Of Service – $1078.20
Average Install Cost – $65.00
No Sales Tax Outside, CA.

Your total purchase cost: $1492.20 vs. a leasing cost of $1620.00. Purchasing saves you over $127 over the cost of the lease. The more vehicles in your fleet, the greater the cost savings are with a purchase.

You should also know that lease contracts require that you make your payment each and every month for the full contract term, whether or not your vehicles are being used or not! This means if you take a few vehicles out of service, you must still pay the monthly fee – no matter what.

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