The truck leasing and rental arm of Paccar, has managed a growing customer base for PacLease, which is increasing by a significant margin.
Despite more than a year full of unforeseen circumstances and unexpected challenges, largely as a consequence of the COVID-19 pandemic, PacLease continues to grow.
Designed to meet the specific needs of customers, the company’s service offering also includes vehicle upkeep and washing, 24/7 roadside assist and flexible lease structures. PacLease is a global commercial truck leasing company that provides customised full-service lease, rental and contract maintenance programs for Kenworth and DAF trucks.
PacLease’s direct connection with Kenworth, DAF and PACCAR means its customers receive premium equipment and services which have been thoroughly tested and assessed for suitability for the needs of each and every customer.
Within its rental and lease fleets, PacLease offers a wide range of Kenworth and DAF truck configurations including single and multi-trailer rated prime movers, as well as rigid trucks including curtain-sided and refrigerated.
According to Andrew Molnar, PacLease General Manager, 2020 was a particularly challenging time for the whole PACCAR organisation, but in spite of this it turned out to be a highly successful year.
“We had our biggest year since PacLease Australia was founded in 2015, in terms of new trucks going on the road in fleets around the country and also into our rental fleets,” says Andrew. “We now have 450 items of equipment for rent or lease nationally, which is an increase of 100 units year-on-year.”
He explains that the most challenging period of last year was when Melbourne went into hard lockdown but outside of that the company struggled to meet the demand and its rental fleet was fully utilised.
“I think our rental flexibility was good during COVID because truck operators were taking on new contracts or getting extra work with existing contracts but weren’t sure if it was going to continue long-term,” says Andrew.
“That’s where rental is a good option; to be able to take a truck for a day, a week or six months – whatever it ends up being – which gave them the flexibility to get the work done before they knew what their long-term requirements would be.”
Andrew says there is still uncertainty now, with some of PacLease’s clients having had rental trucks since the middle of last year and still not knowing whether to purchase or lease.
“They are sticking with the rental until they know exactly what’s going to happen in the world,” says Andrew.
Speaking about the proportion of clients who lease as opposed to those who rent, Andrew says it is now roughly 50-50, although he adds that the lease fleet experienced more growth than the rental fleet in the last 12 months.
“The Government’s Instant Asset Write-Off Scheme has caused a marginal slowdown on leasing but there are still a lot of scenarios where a lease will work better for a customer than an outright purchase – even with the Government’s incentives,” says Andrew.
Furthermore plenty of customers are using PACCAR Financial as a traditional funding method and then attaching a contract maintenance program to the finance contract. As a result the customer has the same benefit as leasing with set monthly costs and knowing what figures are coming in and out each month, with the added advantages of owning the truck after it has been paid off and receiving the Government’s tax benefits.
“This way we maintain the vehicle and provide a backup vehicle in the case of breakdowns or accidental damage, so the customer has limited exposure to the vagaries of unscheduled downtime,” says Andrew. “PacLease gives operators the flexibility to choose the most suitable option for their business model, either leasing or a chattel mortgage with PACCAR Financial along with the addition of a contract maintenance agreement.”
This agreement has three levels, Standard, Advanced and Premium, again enabling customers to choose the best option for their business model.
“The Standard package includes oil-drain services at a set rate with intervals determined by the number of kilometres travelled each year,” says Andrew. “The Advanced package provides the addition of driveline repairs including engine, transmission, diffs and axles, while the Premium package is like a hamburger with the lot that covers everything.”
PacLease’s number one priority is getting to know its customers’ needs and providing a tailored solution that suits their business models.
“That’s the benefit of having our local team at PACCAR head office in Bayswater,” says Andrew. “We are able to monitor our customers’ needs on a month-by-month basis which enables us to respond quickly and adjust contracts to suit changes in circumstances.
“Our local team works in with PACCAR Financial and PacLease regional managers in each state and territory, which gives us comprehensive coverage nationally via the extensive PACCAR dealer network.”