Not only is Union Leasing a fleet management provider who fixes, but we also educate. The issue of Fixed vs. Floating Rate is a question many of our fleet partners look to us to provide an answer to, so here’s a short definition of each and the differences.
We at Union Leasing pride ourselves on our ability to deliver. So whether its one of those questions you have, or our ability to monitor and manage your vehicle fleet management program, we’ve got you covered.
Rate Options
In order to deliver the best leasing service option for our clients, Union Leasing provides both floating- and fixed-rate options for open-end leases.
Fixed Rate
Fixed rates are based on the Prime Rate established at the inception of the lease and remain fixed throughout the term. As with the floating rate, both the Level and Step payment options are available. The Level payment is based on an amortization table that establishes the depreciation and interest charge for that month. Each month your principal reduction increases while your interest charge decreases, resulting in fixed level payment.
Floating Rate
Union Leasing currently employs two indices: LIBOR and Prime. The interest portion of your rate adjusts to reflect any change in the base rate. LIBOR rate adjusts monthly; the Prime adjusts for the next billing cycle after every rate change.
About Union Leasing
At Union Leasing, we provide flexible solutions for every stage of your Fleet Management Lifecycle: Planning, Leasing, Fleet Operations, and Remarketing. It’s a holistic approach that ensures your business goals are achieved. But what really sets us apart is how we deliver. We treat every customer as if they were our first. We avoid off-the-shelf solutions, and instead work with you to tailor an approach that meets the needs of your clients and your business.
Find out how Union Leasing can go the extra mile for you. Contact us today
