Fleet leasing describes a leasing agreement with commercial lessees that involves a number of vehicles. In addition to vehicle leasing itself, leasing companies such as Sixt Leasing offer fleet management services that involve looking after all administrative tasks relating to the fleet of vehicles.
A follow-on agreement is concluded at the end of a leasing agreement's term if the lessee wishes to lease another vehicle. The existing agreement is merely extended if the lessee wishes to continue using the same leased vehicle. 'Leasing returns' describe vehicles that, in contrast, are handed back to the lessor.
Fleet management means that the leasing company deals with the operative and administrative tasks relating to the vehicle fleet. Among other things, the scope of services in fleet management involves ordering vehicles, damage management and the organisation of maintenance and repairs.
Full service leasing
Full service leasing includes the definition of additional services in the operate lease agreement. These service components help the lessor limit deductibles relating to asset-based costs of maintenance, repair, insurance and such like and hence introduce greater calculability and transparency to the cost structure.
A contract with full amortisation – unlike partial amortisation – means that the sum of all leasing payments fully covers the cost of purchase, ancillary costs, as well as the cost of financing and the lessor's profit share.