Does this year’s budget seem smaller than ever? Daimler Financial understands that you need flexible financing solutions in these tough times. Daimler Financial has been financing commercial trucks and buses since 1974. Its $6 billion portfolio includes more than 130,000 commercial vehicles.
As the financial services provider for Thomas Built Buses, Daimler Financial has worked to develop a wide range of competitive and flexible financing solutions that meet the unique needs of bus customers. With the recent economic volatility, many municipalities and private transportation companies have experienced dramatically reduced budgets. Many financing companies have halted or reduced lending.
Fortunately, with the financial strength of the entire Daimler organization behind it, Daimler Financial is in a strong financial position and is still actively lending. Traditional thinking has been that financing buses instead of buying them outright is not a prudent use of taxpayer dollars or limited funds. However, this belief does not take into account many hidden costs.
For instance, when you consider both the additional maintenance costs and reduced fuel efficiency of an older fleet, it is possible to actually achieve savings through the financing of new buses. The following example is for a school district with a fleet having the characteristics listed below:
In this scenario, the annual acquisition budget only allows for the purchase of two buses and does little to reduce the average age of the fleet. The associated maintenance costs of this fleet are estimated at $108,000 per year. However, if this school district were to finance nine new buses through Daimler Financial, the average age of the fleet would be reduced to five years, and the estimated annual maintenance costs would drop to $81,000. This school district would achieve an annual savings of approximately $27,000 in maintenance costs alone.
Fuel efficiency gains also should be taken into consideration. In this scenario, new engine fuel savings are estimated at $11,400. And by trading in some older buses, this school district could generate an additional $24,600 in savings. With all of these factors, it is possible to realize savings of approximately $63,000 per year!
Plus, at the end of the finance term, the buses will be 100%-owned by the school district. The characteristics of this school district’s fleet may be far different from your own. As your financial partner, Daimler Financial would welcome the opportunity to analyze your particular fleet and transportation needs to assess savings opportunities. Whether you have experienced a reduced budget this year, or are just looking for a more practical way to reduce maintenance costs and provide the community with safer and more fuel-efficient buses, an analysis will provide detailed information to help you make an informed decision. Please call Daimler Financial today at 866.351.4672.