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Amortization

How to Calculate the Best Amortization Rate

Choosing the right amortization rate for leased fleet vehicles will have a positive impact on your cash flow; however, some fleet managers choose to stick with the “standard” rate, which can result in a roller coaster ride.

Fleets Reassess Amortization Rates

In the commercial fleet industry, the most common amortization rate used for establishing a depreciation reserve is 50 months. Recently, some major fleets extended amortization rates on new-vehicle orders.

Chubb Takes a Fresh Look at Fleet

While new to the fleet industry, this Chubb Assistant VP reduced the company’s vehicle expenses by getting back to the basics of fleet management.

How to Determine the Correct Depreciation Reserve

Depreciation turns fleet vehicles into “melting” assets. The open-end TRAC lease is an excellent tool to manage depreciation expense; however, maximizing its effectiveness requires establishing the proper depreciation reserve.