The truck leasing market continues to evolve. “OEM dealer lease groups have become the new independents,” says Justin Underwood, leasing manager at TranSource Truck & Trailer Centers, a North Carolina dealership group with seven leasing locations. “We feel it provides our customers with an advantage to have a leasing and rental operation that’s local, part of a dealership, and also part of a nationwide network.
“Locally, we work with customers to spec trucks for their needs and specialized applications, not unlike we would if they were buying vehicles,” Underwood continues. “As a dealership, we can also offer factory-trained technicians and genuine parts as well as better turnaround time for service and repairs. We also see the industry adopting the vertically integrated concept that Mack offers, and that gives us an advantage due to our brand expertise.”
Customers have access to a nationwide network through an affiliation with Mack Leasing System and Volvo Truck Leasing System. “We have daily contact with a national account manager who can help us quickly resolve issues and can provide special programs and discounts that we can pass on to customers,” Underwood states.
TranSource operates Mack Trucks franchises, one Volvo Trucks dealership, and sells and services Hino and Isuzu medium-duty vehicles. The TranSource leasing and rental division is at all locations, providing about 125 vehicles to local companies with one to about 20 trucks. Typical customers include landscaping and agricultural businesses and over-the-road operations that haul lumber and petroleum products.
The TranSource leasing operation also has rental vehicle discounts for replacement equipment needs, and it manages as many as 500 vehicles under a variety of maintenance plans in company shops. Mobile service trucks are being used increasingly by customers and can be scheduled for on-site service, including after hours.
“As a member of the Mack Leasing System and Volvo Truck Leasing System, we can also assist customers anywhere by using the Mack OneCall and Volvo Action Service roadside assistance programs,” Underwood relates. “That affiliation also gives us access to management tools we can use on behalf of customers to lower costs and reduce downtime.”
Underwood is referring to the ASIST platform, developed by Decisiv, which is part of Mack and Volvo’s Uptime Protection web-based fleet service management system. “The platform lets us communicate with customers and other dealers in real time to expedite repairs by providing fast and accurate service estimates for approval,” Underwood explains. “It also gives everyone automated access to specifications, fleet requirements, and vehicle-specific data on recalls, warranty coverage, repair plans, and pricing.”
There are many reasons that leasing is a favorable alternative, Underwood says, including what appears to be the resolution of a long unresolved issue involving accounting standards that will require leases for trucks and trailers to be shown on balance sheets as “right-to-use” assets. While the agreed-upon change will require separate accounting for maintenance and fuel services as well as rental payments, it is not likely to have a negative impact on the lease vs. buy decisions fleets have to make.
