Leaseback a Sound Financial Option: LeasePlanBy Alejandro Enríquez | Thu, 04/08/2021 - 12:43
Q: What have been LeasePlan’s highlights in Mexico since 2019?
A: Our profit margins have increased by 12 percent following an increase in the size of our clients’ fleets, as well as the addition of new clients to our portfolio. LeasePlan continues to focus on promoting innovation in the leasing market, offering consulting services to take advantage of fleet investments.
We are advising companies in Mexico, mostly from the pharmaceutical, retail and consumer industries, and getting them acquainted with our newest solution: Leaseback. Through this scheme, companies can sell us their car fleets and rent them back on a monthly basis at very affordable prices with specialized management that allows them to generate greater savings while ensuring their employees’ mobility.
Our main goal is to be the leader in the segment this year and increase our fleet by deploying a strong customer-focused team. We are succeeding by providing consulting services and a maintenance cost analysis that can lead to 40 percent savings throughout the useful life span of the fleets while taking advantage of the benefits of our objectives program with preventive and corrective maintenance services. Our success has resulted in a profit of more than MX$7 million (US$350,000) over a three-year period.
Q: How did the pandemic influence LeasePlan's operations?
A: The pandemic brought unexpected changes to daily life and had a major impact on economic activity. At LeasePlan, we started working remotely since March 2020 and I can say everything is working better than expected. I am grateful to my team for their support and for quickly adapting to this change.
We provide car-leasing programs that suit every need. Given the current scenario, it is important to have strategic partners that contribute directly to effectively managing resources and meeting business objectives in a sustained manner. This is one of the many advantages clients get from acquiring this kind of service.
There are other aspects that make leasing a viable option and, above all, convenient in these times of economic recovery. One of the most attractive benefits of leasing is that the expenses related to the vehicle are 100 percent tax-deductible for companies as they are considered a fixed operating expense.
According to AMAVE, only 15-20 percent of companies use leasing. What are LeasePlan's strategies to grow its market share?
Our main objective is to meet our clients’ needs and we work with a 360° model to achieve this goal. One differentiator is our proximity to the customer, which is demonstrated by the customized follow-up provided to each of our clients. We are focusing on communicating this to our target audiences and the general public to become the No. 1 leasing referent in the country.
LeasePlan experts create tailored proposals to improve fleet management for clients and prospects. Additionally, we continue to raise awareness about the importance of leasing as a deductible and reliable investment option for all companies in Mexico. The pandemic and the economic situation we are experiencing open up a window of opportunity in our industry to support the economic recovery of our clients and potential customers.
A crisis is an opportunity to evolve and become stronger. That is why it is time to rethink and redesign our strategies now. Redistributing financial resources is a common practice in moments like these. Savings become a fundamental part of any organization. An efficient leasing program allows companies to avoid hidden costs, maximizing their investment and reducing fiscal costs, with additional advantages.
Our proposal to every company is to work together and find the best option for their mobility needs. LeasePlan brings relevant information to the decision-making process through the Total Cost of Ownership model, fully disclosing the costs of a fleet and identifying areas for improvement.
Q: What is your perspective on growing EV and efficient vehicle fleets to tackle carbon emissions?
A: Electric and hybrid vehicles are becoming a relevant trend in the automotive industry. For us, it is important that our clients are aware of the benefits of having an ecological fleet. As founding members of the EV100 initiative, we want our vehicles to achieve zero emissions by 2030.
The transition to hybrid and electric vehicles implies that employee needs will shift over time, as well. Our objective is to better support and advise companies when updating their fleets, managing fleet costs and providing clarity to the company.
Although Mexico does not yet have the adequate infrastructure for fully electric fleets, this will undoubtedly be a trend in the coming years, starting with hybrid cars.
Q: Telematics and data analytics are essential for leasing services. How do these tools help you to improve your operations and customer experience?
A: In terms of digitalization, tools like our mobile application collect all the information on your vehicle to generate online fleet reports 24/7 and to provide details on the location of the fleet, recommendations on driving practices and the best routes to optimize travel time. We provide a service that includes telematics and data analytics to help our customers achieve efficiencies in their fleet management business models.
Q: What are LeasePlan's strategies for 2021?
A: Being a strategic consultant to our prospects and customers, helping them save money, evolving to a green fleet and recapitalizing them through our LeaseBack solutions will be the main business strategy that will allow us to grow at double-digit rates in Mexico. LeasePlan is the ideal partner for companies in situations that require cost reductions and economic adjustments.
LeasePlan is a Netherlands-based company focused on leasing and fleet management services.