Updated:
12/2/2009 8:00:00 AM
Opinion: Leasing Makes Hybrid Trucks Affordable
By Olen Hunter
Director of Sales
Paccar Leasing
This Opinion piece appears in the Nov. 30 print edition of Transport Topics. Click here to subscribe today.
Interest in adopting environmental initiatives remains high among trucking firms in spite of the difficult economic conditions in which they’re operating, according to a new survey conducted by PHH Arval. Results of that survey were reported in the Transport Topics 2009 “Top 100 Private Carriers” supplement to the Aug. 3 issue.
Based on the reported experiences of early adopters of diesel-electric hybrid truck technology, many fleet managers and owners see the operational benefits of acquiring new trucks with fuel-saving hybrid diesel-electric powertrains. Hybrid diesel-electric trucks save upward of 30% to 50% in fuel — depending upon the application. Plus, they reduce their exhaust emissions of hydrocarbon, carbon monoxide and nitrogen oxide because they use less diesel fuel.
Many early adopters see hybrid trucks as a way for their companies to demonstrate a commitment to environmental stewardship.
While many companies are considering adding hybrid trucks to their fleets or replacing older models with hybrids to take advantage of potential fuel savings, questions still abound about justifying the additional cost associated with acquiring the new technology. According to the Arval survey, half of the fleet managers surveyed (54%) said cost was the top challenge in “greening” their fleets.
That additional cost can leave many wondering how they can afford to add hybrid trucks to their operation. Acquiring them through full-service leasing could provide the answer.
With a full-service lease, companies pay for the use of the truck — not the truck itself. This approach often can provide cash flow and operational advantages to ownership. A full-service lease takes the purchase price and projected maintenance costs and subtracts the residual value. For a hybrid, after factoring in fuel savings, plus tax credits from state and federal governments, the cost per month of leasing can be close to that of a nonhybrid truck.
Whether — and how quickly — operators realize a positive return on investment from leasing hybrid trucks will depend on fuel economy, fuel prices, the length of the lease term and the number of miles their trucks travel.
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