The Full Maintenence Lease (FML) product focuses on usage as opposed to ownership of a motor vehicle, light delivery vehicle, forklift or selected heavy industrial equipment. If the main aim of the client is usage as opposed to ownership then an Operating Lease or a Full Maintenance Lease is the correct product for the client.

Our Solutions

How it works

This product offers vehicle USAGE WITH MAINTENANCE and no risk of ownership. The Client carries NO maintenance risk except for cases of driver abuse.

The finance and resale risks are carried by Merchant West.

Benefits

  • Usage without risk of ownership
  • No Capital outlay
  • Improved cash flow
  • Lease payments are fully tax deductible
  • Off balance sheet financing
  • VAT paid monthly
  • No Residual Value risk
  • Costs are fixed except for interest rate fluctuations and driver abuse

How it works

This product offers vehicle USAGE WITHOUT MAINTENANCE and no risk of ownership. The Client carries the maintenance risk and is liable for all maintenance during the period of the lease. Managed Maintenance can be added to this product. The finance and resale risks are carried by Merchant West.

Benefits

  • Usage without risk of ownership
  • No Capital outlay
  • Improved cash flow
  • Lease payments are fully tax deductible
  • Off balance sheet financing
  • VAT paid monthly
  • No Residual Value risk

How it works

This product is designed to reduce maintenance expenditure on a fleet for companies that are too small to employ or do not have access to a transport manager who can ensure that only necessary maintenance is carried out, that invoices are checked against industry norms for parts used and the pricing thereof, and also to negotiate rebates and discounts on the company's behalf.

Benefits

  • Scrutinise job cards before approving the maintenance
  • Scrutinise the job card and invoice for accuracy before payment
  • Company is provided with a single VAT invoice for whole fleet on a monthly basis
  • Reports on each vehicle monthly, tracking maintenance costs including tyre usage
  • Reduction in Administration burden on maintaining the Fleet

Products

  • Vehicle Tracking
  • Fuel, Toll and Maintenance Cards
  • E-tags
  • Reports detailing costs, kilometres driven, harsh braking and acceleration

Director of Full Maintenance Lease Division

Vic Viljoen

Tel: +27 11 305 9400

fullmaintenancelease@merchantwest.co.za