Fleets always have had to make the decision about whether to own, lease, or rent assets. This is unlikely to change as we move into a future when there will be many more options for powering vehicles.
Given the myriad choices of powertrain options available for all duty cycles—battery-electric, hydrogen fuel cell, hydrogen internal combustion, renewable diesel, biodiesel, compressed natural gas, liquified natural gas, and traditional diesel and gasoline power—it makes a great deal of sense to switch from ownership to leasing.
There are a variety of leasing options available, but when it comes to new technology, a full-service lease may be your best choice. No one knows with any degree of certainty what the maintenance requirements will be for these new alternative-fuel vehicles, but we do know it's going to require a different technician skill set to maintain and repair them.
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When you opt for full-service leasing, the lessor takes on the responsibility for the maintenance and repair of the asset and you pay a set fee each month. This option also removes the burden of having to find technicians who are properly trained to work on these new vehicles. Given the current technician shortage, finding and training techs can be a time-consuming task.
Buying an asset outright might make sense in some scenarios, especially if you plan to keep an asset for an extended period of time. However, make sure you do the lease vs. buy calculation to determine which option makes the most financial and operational sense.
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In addition, if you want to try a new technology before you buy it, a short-term rental makes sense so you can see how the technology performs in your operation. Opting for a short-term rental allows you to check out how manufacturer claims about a product stack up in your real-world operating environment. Plus, renting a vehicle allows you to gauge driver acceptance of a new technology, which is important given the perennial driver shortage. Without driver buy-in, you will not be successful deploying a new technology.
The decision to own, rent, or lease assets is not an all-or-nothing choice. Each option can have a place in your fleet, and you may find yourself using all three as we navigate through all the transportation options that allow us to move freight in a more sustainable manner.
Jane Clark is vice president of member services for NationaLease. In this position, she is focused on managing the member services operation as well as working to strengthen member relationships, reduce member costs, and improve collaboration within the NationaLease supporting groups. Prior to joining NationaLease, Clark served as area vice president for Randstad, one of the nation’s largest recruitment agencies, and before that, she served in management posts with QPS Cos., Pro Staff, and Manpower Inc.
