PLANNING INFO & SERVICES
We are ready to give you answers to your questions regarding funding your fleet. We are experts at explaining the various types of leasing and finance contracts available to fund your fleet and/or equipment.
We will ask questions that take into account your usage, and life cycle for each specific type of equipment or vehicle that you will place in service.
We will help you determine the proper depreciation during the term of the lease or funding you desire. This is an important step, so that your company can correctly expense the asset in relationship to the revenue it generates.
What makes us stand out is this -- our personal and timely approach in guiding you through the funding process.
"GPD Fundtastic Experience is our commitment to you and your company."
TRAC lease(Terminal Rental Adjustment Clause)
• Sales tax does not have to be capitalized. This keeps your early termination payoff lower than alternative funding.
• Potential Benefit in accounting treatment. No need for depreciation schedules.
• Predictable wholesale values at the end of the term.
• Off Balance sheet treatment (check with your accountancy).
• Lessee/Lessor relationship on title and registration.
• Added insurance liability coverage by Lessor.
Finance Contract (EFA)
• Sales Tax is capitalized in the loan
• Registration and title is in the company name only-We hold the lien only
• Potential first year depreciation benefits
• Title and registration issues are simplified
Sales Tax Implications
GPD delivers TRAC leasing programs across the United States, including Alaska, Hawaii, Puerto Rico and Canada.
This allows for sales tax to be paid monthly for the states that offer resale numbers for use tax payment method. We have the ability to title, register and handle the sales tax issues for all your multi-state divisions.
One of the most important reasons to choose a TRAC lease is if you have an early termination for a particular asset your payoff will be greatly reduced when compared to a finance contract. This is due to the fact when doing a finance contract the sales tax is paid upfront and capitalized in the loan. This results in a higher payoff schedule when compared to a TRAC lease.
Balance Sheet Treatment
Depending on the lease structure that you desire you may want to set up your lease in accordance with FASB 13. It may be important to your company to have a True Operating Lease. We can structure the contract to guarantee a certain qualifying percentage of the cost of the asset at the end of the term. Another approach would be to set up a Closed End Lease which can often accomplish the same objective from an accounting standpoint.
GPD can also arrange for lease funding that is considered a capital lease. All capital leases have either a dollar or minimal buyout at the end of the lease. These types of leases usually are capitalized in the balance sheet of the company. Depending on your accountancy treatment sometimes the lease payments are expensed.
Manufacturer’s Incentives and Wholesale Pricing
GPD is an expert in ordering certain fleet vehicles and trucks that reduce the overall cost of the asset. For example, if you were to order a SUV, we would take you through the process of identifying all of the available options you want. We order that unit just like a dealer and the unit would be delivered to a courtesy delivering dealer close to your location. Bottom line is you get the manufacturer’s wholesale invoice pricing. Our factory invoice does not have advertising nor finance monies built into the invoice. If you were to buy this same vehicle from an out-of-stock dealer, their invoice would be approximately $500-$800 higher. Remember, if you qualify for fleet incentives, then all fleet incentives are passed out of the invoice to you.
24/7 Fleet Account Access
This online service gives you access to your billing, payoff calculations, title registration administration, and an interactive portal for questions about your fleet. The billing can be seen by downloading either a PDF or an Excel format. This allows you to add company information like drivers’ names, and internal company numbers to identify your fleet.
This added value service is for certain qualifying fleets. the billing feature includes the term of your lease, the lease number, the number of lease payments made, sales tax and the payment amount, the corresponding equipment description and VIN number. Be sure to ask your GPD Funding Specialist about the 24/7 program.