Analysis of Renting Equipment vs Purchasing 2

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Presentation by Troy Scott, Enterprise Fleet Management

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Analysis of Renting Equipment vs Purchasing 2

  1. 1. Agenda• Introduction & Company Overview• Purchasing vs. Leasing• Proper Vehicle Life Cycle• What is Fleet Management?• Q &A© 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  2. 2. Intro-Enterprise Fleet Management• Enterprise Family of Companies Comprised of:• Founded by Jack Taylor in 1957• Family owned and operated company, currently beingrun by Jack’s son Andy Taylor• Largest owner, operator, and purchaser of vehicles inthe United States (1.2 million vehicles)• Specialize in working with companies with small tomedium size fleets (15-125) © 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  3. 3. Advantages of Open-End Lease• NO early termination penalties• NO mileage or wear and tear penalties• Flexibility of ownership with the tax benefits of leasing• Off balance sheet financing• Improves Cash Flow as you pay only for what you use© 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  4. 4. Traditional Financing Open-End Lease Vehicle Price $24,000 Vehicle Price $24,000 $10,000 Market Value $10,000 Market Value In 48 months In 48 months $5,000 in Equity $10,000 in Equity© 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  5. 5. Proper Vehicle Life Cycle $24,000 Year 1 Purchase Price First 4 Years Annual Cost Depreciation $14,000 $3,500 $10,000 Year 4 Market Value Last 4 Years Annual Cost Depreciation $8,500 $2,125 Additional Maintenance $4,800 $1,200 Lost Fuel Efficiency $2,000 $500 Total $15,300 $3,825 $1500 Year 8 Market Value© 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  6. 6. Proper Life Cycle & Leasing• Drastically reduce downtime• Reduce Spare Vehicles• Increased Employee Morale• Increased Company Image © 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  7. 7. Fleet Management is 5 things…• Buying Vehicles at the right time through the proper channels• Funding vehicles for the appropriate period of time to manage cash flow• Controlling & Reducing Operating Expense (maintenance, fuel, and insurance) while alleviating time spent on these areas• Disposing of Vehicles at the right time to maximize gains before vehicles become costly• Managing all other aspects of vehicles: Tags, Title, Reporting, Personal Mileage, Strategic Analysis, etc. © 2007 Enterprise Rent-A-Car Company Confidential and Proprietary
  8. 8. Q&A• Presenter: – Troy Scott • Troy.J.Scott@efleets.com • (916) 390-2612© 2007 Enterprise Rent-A-Car Company Confidential and Proprietary

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