Frequently Asked Questions

• What is a lease?
  A lease is a contract where one party (Lessor) allows another (Lessee) the exclusive right to use and possess its equipment, including vehicles, for a specific period of time. The contract obligates the Lessee to make periodic payments to the Lessor for the use of the equipment. A lease, utilized as a source of financing, is usually a long-term agreement that is non-cancelable. The Lessee is responsible for all peripheral costs associated with the use of the equipment, including taxes, insurance and maintenance during the term of the lease. At the end of the lease term, the Lessee may have an option to extend the lease term, return the equipment or purchase it at a predetermined option price.
• What is the difference between a lease and a loan?
  The Lessor retains legal ownership of the equipment during the term of the lease.
• Why Lease?
  Affordable payments...potential tax benefits liabilities...preservation of lines of credit or retention of valuable cash. Thanks to benefits like these, eight out of ten U.S. businesses use lease financing to acquire the vehicles and equipment they need to grow.
• Who can lease?
  Any company, organization or association. We do not lease to individuals for personal use.
• How do I apply for a lease?
  Applying for a lease is easy. You can fax our on-line application to us or just call and speak to one of our account managers to get started.
• How long does it take to be approved?
  Depending on complexity, completed applications with appropriate financial documentation will generally have an approval within 24-hours.
• How is my monthly payment calculated?
  Vehicle lease payments vary based on the type of vehicle, usage and term. Each is custom quoted. Unlike equipment leasing, CFL should be involved in locating and acquiring the vehicle(s) to take advantage of our purchasing power. Factory orders, if time allows, are generally less expensive.
• What is the interest rate in a lease?
  Lease rates are different than interest rates. Lease rates are for determining the base lease payment and can be compared to other lease payments. There is no "interest" in a lease payment. You are paying for the use of the asset over the lease term. The payment varies based on which lease plan you choose, the term of the lease and the cost of the equipment.
• Can a lease be cancelled? Can I pay off my lease early?
  A lease is a non-cancelable contract. However, if you want to terminate the lease early, the remaining lease payments are generally discounted to arrive at a lease payoff balance.
• What is the buyout at the end of the lease?
  You have a variety of options available to you in structuring what happens at the end of the lease term.  Depending on the leased asset, we have everything from a $1.00 buyout to a fixed amount due which is guaranteed in the purchase agreement. These options are pre-determined at the beginning of the lease so that you know exactly what you are going to pay. We can also structure some vehicle leases with a Fair Market Value option, not an obligation, at the end of the lease if that better suits your needs.
• Are lease payments a tax write off?
  Most all vehicle leases and some equipment leases can be structured so that the lease payment can be written off as an operating expense. It is recommended that you consult with your tax advisor for the specific application to your business.
• Are the lease rates variable?
  Lease rates are fixed for the term of the lease regardless of what happens in the banking industry or on Wall Street.
• Can I lease used equipment?
  Yes. In most cases used vehicles or equipment can be leased.

• If we lease our vehicles from CFL, can you assist us in the remarketing of our current company-owned vehicles?
  CFL can remarket your company-owned or currently leased vehicles. We establish market values for each vehicle and you make the final decision on how you want to handle the remarketing of the vehicles.

• Can you purchase the vehicles we currently lease or own and lease them back to us?
  Yes. First we would evaluate the vehicles and advise you of the market value for each vehicle. We would then develop the projected lease term and end-of-lease value for each vehicle. If you agreed, we would finalize the purchase of your vehicles and lease back program.

• Can we utilize your Fleet Management Services for our company-owned or leased vehicles?
  Yes, nearly all of our Fleet Management Services are available for your company-owned vehicles or even vehicles leased through another lessor. Please contact us for details.

• What if our company has a relationship with a local dealer and we want to keep that relationship?
  We would contact your preferred dealer and make arrangements to set them up as a preferred dealer to meet your vehicle needs.

• How can CFL help if we have vehicles in several cities across the United States?
  We have a network of vehicle dealers located throughout the U.S. that deliver and service vehicles for our lessees. If you have a preferred delivering dealer, and they are not listed in our dealer network, we will add them as a preferred dealer.

• Can CFL provide day-to-day assistance if we do not have a full-time fleet manager?
  We provide assistance with the management of your corporate vehicles by:
  > Developing and implementing a written corporate vehicle program.
  > If approved, we can work directly with your drivers.
  > Recommending vehicles for your corporate-vehicle program.
  > Obtaining Motor Vehicle Record checks for company drivers.