Open End Leases (Finance Lease)
The open-end lease provides the flexibility and economics of ownership. Open-end leases have a 12-month minimum term and no mileage restrictions. The lessee determines the depreciation rate on each vehicle, therefore, leaving them responsible for any gain or loss from the sale of the vehicle. Under this type of lease, vehicles are replaced based on mileage rather than term. Most companies who lease vehicles for their sales and service representatives use this type of lease.
Closed End Leases (Net Lease)
The closed end lease is set up for a specific number of months and mileage. The manufacturer's finance company or local dealerships typically provide this type of leasing. This program does not work well for companies with a fleet of vehicle spread throughout the country. Since sales and service representatives have different size territories and driving patterns, this program lacks the flexibility to accommodate them. This program is designed for individuals who have an established driving pattern or companies who prefer to avoid used vehicle risks.
Fixed Rate Funding
Velcor provides fixed interest rate funding based on the prime rate of interest. The interest rate is set on the date of delivery and fixed for the duration of the lease. The prime rate follows the interest rates published in the Wall Street Journal.
Floating Rate Funding
Velcor provides a floating interest rate based upon the 30 day LIBOR rate. This interest rate varies each month and is generally less expensive than fixed rate funding. Velcor provides a lock-in feature to convert leases to a fixed interest rate program if interest rates increase above your rate tolerance. Once converted, the leases must remain fixed for the duration of the lease. We follow the LIBOR rates published in the Wall Street Journal.
Schedule C Funding
This program is designed for companies who want the benefits of leasing and ownership. Companies can use their own funds to set up a loan to the lessor. The interest rate charged on the loan is the same as the interest rate billed on the lease. The lessee receives all the programs and services provided with a conventional lease.
Purchase and Disposal Programs
Some companies provide vehicles to their employees through a company ownership program. Velcor provides a purchasing program that allows a company to purchase vehicles at fleet prices and drop ships them across the country to their drivers. This program ensures competitive pricing and access to vehicles from all manufacturers. We can also arrange for the disposal of the used vehicles through our nationwide outlet of auctions and wholesalers.
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