Choose fixed-rate financing for precise budgeting. An interest rate is set for the duration of the lease, eliminating the risk of rising rates. Take advantage of Step-Down or Level-Pay with fixed-rate financing:
- Step-Down Lease: Average the interest cost over each 12 month period; the interest portion of the payment decreases as the principal loan balance is paid off
- Level-Pay Lease: Averages the interest cost over the lease duration and maintains the same monthly payment
Choose floating-rate financing, where the rate you pay is indexed to a common lending indicator (such as LIBOR or Commercial Paper) and may change monthly. This strategy works best in a stable or declining interest rate environment.
Some companies find it beneficial to own their fleet of vehicles. Southgate offers a Purchase and Disposal Program, allowing our clients to:
- Procure vehicles easily, leveraging the buying power of Southgate
- Receive all fleet/retail incentives or specialty rebates offered
- Ensure all vehicles are titled and registered correctly
- Track license renewals in multiple states and municipalities.
- Utilize maintenance management and fuel programs to track variable expenses.
- Eliminate the hassles of vehicle remarketing and maximize resale value.