Truck & Vehicle hire (FML)

Full Maintenance Leasing (FML) provides a comprehensive financial and maintenance package for businesses and private individuals that require the use of a vehicle or number of vehicles for various purposes, but do not want to take ownership of or the risk of maintaining or disposing of the vehicle/s.

FML allows you the use of a vehicle at a fixed monthly rental (subject to change as interest rates fluctuate) for an agreed term after which the vehicle is returned to us. You are not at risk or inconvenienced at the end of the contract as the vehicle is returned and sold by us, provided that the contract parameters have been adhered to and that there is no need for repairs to the vehicle which are not deemed as fair wear and tear.

Monthly rentals are calculated based on the:

  • Prevailing Prime interest rate
  • Projected mileage
  • Expected maintenance
  • Agreement term (months)
  • The vehicle's make and model

Features

  • We buy the vehicle
  • You pay a fixed monthly rental for the use of a vehicle
  • The rental is calculated taking into consideration the expected distance that the vehicle will travel over the contract period and the market value of the vehicle at the end of the contract (residual value)
  • FML rentals also include a maintenance portion based on distance travelled and the contract period
  • Vehicles have to be comprehensively insured by you
  • At the end of the contract the vehicle is returned to us and we carry the risk of disposing it
  • You may be responsible for make-good costs and excess cents per kilometre (cpk) at the end of the contract
  • Licensing and registration is done by us when the vehicle is bought. Thereafter annual licence renewals and fines management are your responsibility, or you can make use of our fines and licence management service

Benefits

  • There is no risk of disposing of the vehicle at the end of the contract
  • Full scale branding in your reflecting your corporate colours and identity
  • There is no risk of unexpected expenditure on services and maintenance
  • We acquire vehicles at a discounted rate through our pooled buying power via our network of suppliers and the savings result in a lower monthly rental
  • Budgeting and forecasting are accurate as costs can be fixed for the selected period
  • FML frees capital , which would otherwise have been tied up in your fleet, for income-generating opportunities
  • Flexible agreements result in you being able to amend the period and distance of the contract if your circumstances change
  • FML rentals are fully tax deductible under company tax regulations as an operating expense
  • Monthly rentals include VAT which can be claimed back if you are registered as a VAT vendor. However, it needs to be noted that on passenger vehicles (including double cabs), only the VAT on the maintenance portion of the rental can be claimed while the full amount of VAT can be claimed on light delivery and commercial vehicles.

Operating rental
An Operating Rental is in essence an FML, however, with this option you take on the responsibility of maintaining the vehicle according to manufacturer standards.

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