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Lease vs Buy on Tool of Trade (ute) fleet

  • 1.  Lease vs Buy on Tool of Trade (ute) fleet

    Posted 13 August 2019 21:10
    ​Hi all,

    I'm looking for some help to determine the likely cost of leasing our Council's tool of trade utility fleet. Has anyone out there undertaken a similar analysis or does anyone out there currently lease, rather than buy?

    Any assistance would be greatly appreciated.

    Please note I am not after unsolicited proposals or marketing from business contacts on this forum.

    Thank you

    David Moran
    Fleet and Procurement Coordinator
    Eurobodalla Shire Council

  • 2.  RE: Lease vs Buy on Tool of Trade (ute) fleet

    Posted 15 August 2019 01:09
    Edited by John-Paul Berry 15 August 2019 20:36
      |   view attached
    Hi David,

    I recently done an analysis to compare the whole of life costs between leasing and buying assets outright over a 3 year term. To eliminate as much grey as possible, I've only used the financial procurement component plus registration renewal and excluded every other service (maintenance, fuel, insurance etc)

    All values exc GST.

    Edited my earlier screenshot as I miscalculated registration - Thanks Joe for pointing this out.

    Note: Opportunity cost has been calculated at 2% per year. Purchase price - WA State Contract Pricing. Sale Values - Redbook

    John-Paul Berry
    Fleet Management Officer
    City of Armadale


  • 3.  RE: Lease vs Buy on Tool of Trade (ute) fleet

    Posted 15 August 2019 01:10
    Perhaps a call to Greg Nagle at Lachlan Shire Council - Condobolin, 0428 951 983, may be worth a call as he manages councils large fleet
    with many years experience.

    Dave Carter CLR Lachlan Shire