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Fleet Advantage Totals $660MM in Lease Origination Volume

July 13, 2021, 07:09 AM
Filed Under: Industry News

Fleet Advantage announced significant achievements and milestones for its fiscal year ending June 30, reflecting the company’s prompt response over the last 12 months to help its clients navigate the difficulties of 2020 and economic rebound at the beginning of 2021.

Driven by pent-up consumer demand, healthier personal savings accounts, ongoing Federal stimulus measures and a rise in vaccinated Americans, many businesses have accelerated their reopening plans throughout 2021. According to the Organization for Economic Cooperation and Development (OECD), the U.S. economy is expected to grow 6.9 percent this year, a staunch increase from the 3.5 percent contraction in 2020. This has resulted in many organizations looking to upgrade their heavy-duty truck fleets to handle the demand from shipping partners and customers.

Increased Lease Originations and Shorter Life Cycles

Fleet Advantage’s custom, flexible financing programs have benefitted organizations looking to scale and adapt to the market. The company has a large compilation of big data that offers multiple solutions to help fleets manage Life Cycle Cost Management (LCCM). It is accompanied by strong partnerships with original equipment manufacturers and finance partners to secure the best solution for each company. As a result, Fleet Advantage’s Lease Origination volume totaled $660 million, with a portfolio of over $1.5 billion in assets under management.

Since its founding 12 years ago, Fleet Advantage’s diligent focus on helping transportation fleets shorten their trucks’ life cycle has helped build the youngest average Class 8 fleet in the industry, at 2.5 years and 267,000 miles compared to the industry average 6.3 years and 610,000 miles with average driving MPG over 7.0. Their focus on fleet modernization has enabled its clients to significantly increase overall productivity, reduce truck operating downtime, save millions of gallons of diesel fuel, decrease emissions, and lower their cost-per-mile in maintenance and repair (M&R) expenses. It also increases advancements in safety technology and driver recruitment and retention.

Newer Trucks Equal Safer Trucks

Fleet Advantage’s Safety First Program focuses on safety proactively by shortening equipment life cycles to onboard new safety technology more rapidly. Safety technologies include collision avoidance, lane departure and blind spot assist to keep drivers and other motorists safer, while also reducing exposure to expensive litigation. According to a June 2020 report by the American Transportation Research Institute (ATRI), the average size of verdicts increased 967% from $2,305,736 in 2010 to $22,288,000 in 20183.

The Fleet Advantage Class-8 Fleet Customer Safety Advancements for FY 2021 include:

  • 95 percent Collision Avoidance
  • 98 percent Lane Departure
  • 81 percent Blindspot Assist

Driving Sustainability Goals within the Industry

Shortened life cycles are also having a direct and distinct impact on corporate sustainability measures. Fleet Advantage’s efforts have been focused on driving sustainability throughout its organization and that of its client partners by working with customers to lessen their overall environmental impact and execute on their sustainability goals. As a result, the company has significantly reduced fleet CO2 through the implementation of constantly improving clean-diesel new truck technologies. These measures are critical since, according to Pieter Tans, senior scientist at the National Oceanic and Atmospheric Administration (NOAA), businesses are adding roughly 40 billion metric tons of CO2 pollution per year.

  • Fleet Advantage recently helped two Top 100 Fleets eliminate over 55,000 metric tons of CO2 and conserve over 5 million of gallons of fuel.  At $3.00 per gallon of diesel, that equates to improved MPG and over $16 million in reduced fuel expenditures!

“There is a significant bounce-back of activity in many businesses, which is increasing demand for both new and used trucks to handle the shipment of goods across the country,” said John Flynn, CEO of Fleet Advantage. “Our new purchases combined with off-lease used sales exceeded 6,000 Class-8 tractors.  Our model of clean-diesel and safety-enhanced trucks with shorter life cycles and flexible finance options compliments what many of our customers are seeking in the market including ESG (Economic and Social Governance). The last 12 months were challenging, but our team remained committed to excellence and customer service and we’re proud of the fact we operated responsibly and maintained full employment while helping our customers navigate such a difficult period.”

Fleet Advantage also continued its focus on making an impact by supporting the needs of the communities where its employees and clients live and work. Through its charitable program Kids Around the Corner, Fleet Advantage continued its financial support with numerous charities over the last 12 months.

See the full release here.

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