Lease vs. Purchase Analysis
Refuse & Recycling Truck Fleet Solutions
1. A Strategic Comparison for Modern Fleet Management
Executive Summary:
When acquiring refuse and recycling trucks with specialized bodies, fleets face a critical decision between leasing and ownership.
Overcome budget constraints with predictable, fixed annual costs.
Key Challenge:
The complexity of modern refuse vehicles—with sophisticated hydraulics, electrical systems, emission controls, and computer-managed
components—makes this decision particularly significant.
This presentation examines both options to help you make an informed decision for your fleet.
2. The Complexity of Modern Refuse Vehicles
Today's refuse and recycling trucks represent some of the most technologically advanced commercial vehicles on the road.
Result: Vehicles requiring computer-trained technicians and specialized diagnostic equipment.
Chassis Systems:
• Advanced emission controls
• Computer-managed engines
• Sophisticated diagnostics
• Complex electrical systems
Body Systems:
• Hydraulic controls
• Integrated electronics
• Computerized monitoring
• Specialized sensors
Result: Vehicles requiring computer-trained technicians and specialized diagnostic equipment.
3. Ownership Challenges
The Two-Warranty Problem: Traditional ownership involves navigating a fragmented warranty structure that creates significant
operational challenges.
Chassis Warranty: OEM Dealer First year only
Body Warranty: Body Manufacturer Separate dealer
The Problem: Chassis dealers blame body issues. Body dealers point to chassis problems. You're caught in the middle with accusations
of improper maintenance becoming the convenient explanation when neither party wants responsibility.
4. Technical Expertise & Maintenance Burden
Technical Expertise Requirement, Fleet operations must either:
Develop Internal Expertise:
• Hire specialized technicians
• Invest in diagnostic equipment
• Continuous training costs
Rely on External Providers:
• Multiple service relationships
• Limited accountability
• Coordination challenges
Maintenance Burden: Owners bear full responsibility for understanding and executing complex maintenance protocols. Even minor
deviations from manufacturer specifications can void warranties and expose the fleet to major repair costs.
5. Three-Year Ownership Timeline
YEAR 1 - The Honeymoon Period, Manufacturer warranties provide some protection.
However:
• Navigating the two-warranty system creates friction
• Chassis and body dealers point fingers at each other
• Your trucks sit idle during warranty disputes
• Downtime impacts service delivery and revenue
Even in the best year of ownership, warranty fragmentation creates operational challenges and unexpected downtime.
YEAR 2 - Reality Sets In, Warranty coverage expires or becomes severely limited
The fleet now bears increasing costs:
• Expensive emission system components begin to fail
• Sensors and computer modules require replacement
• Each failure requires specialized diagnostic expertise
• Repair bills hit your budget unexpectedly
Unpredictable repair expenses begin to impact financial planning.
YEAR 3 - Decisions, Maintenance and repair costs accelerate significantly
Critical Decisions Required: Invest in major repairs on vehicles approaching replacement age, or accept reduced reliability?
Residual Value Concerns: Technology becomes outdated, wear accumulates, resale value drops
The Difficult Choice: Continue pouring money into aging equipment OR navigate the challenges of disposing used refuse vehicles
with uncertain maintenance history
Maximum cost uncertainty at the worst possible time.
6. Beyond Year Three - The Ongoing Ownership Dilemma
After the three-year mark, fleet managers face increasingly difficult decisions:
Option A: Keep Running
• Escalating maintenance costs
• Increasing reliability concerns
• Growing downtime issues
• Technology obsolescence
• Regulatory compliance risks
Option B: Dispose
• Finding buyers for used equipment
• Uncertain maintenance history impact
• Obsolete technology reduces value
• Time and effort to sell
• Need immediate replacement capital
Neither option is attractive. Both create financial strain and operational headaches.
7. The RDK Lease Solution - A Better Approach
RDK Three-Year Lease Program
A comprehensive solution that addresses every ownership pain point:
• Single Accountability - One party responsible for complete vehicle
• Training and Technical Support - Specialized training for your personnel and on-going technical support
• Fleet Partnership - Support beyond just leased units
• Financial Predictability - Fixed payments and predictable maintenance costs
7-a. Single Accountability
One Responsible Party for Everything - Whether the issue originates in the chassis, body, hydraulics, electrical system, or emissions
controls—RDK handles it.
• No warranty blame game, No finger-pointing between chassis and body dealer
• Rapid problem resolution, Focus on getting trucks back in service, not determining fault
• Complete vehicle expertise, One team understands the entire integrated system
This eliminates the warranty blame game entirely.
7-b. Training and Technical Support
Building Your Fleet's Competence - RDK provides specialized training and technical resources that transform your team's capabilities.
Ownership Cost Reality:
• Year 1: Predictable (warranty coverage)
• Year 2: Rising & unpredictable costs
• Year 3: Accelerating expenses
• Beyond Year 3: Maximum uncertainty
• PLUS: Depreciation concerns
• PLUS: Disposal challenges
RDK Lease Cost Reality:
• Year 1: Fixed monthly payment
• Year 2: Fixed monthly payment
• Year 3: Fixed monthly payment
• End of Term: Simple transition to new equipment
• NO surprise repair bills
• NO disposal headaches
8. Technology & Regulatory Advantages
Stay Current, Stay Compliant - The refuse industry faces rapidly evolving technology and tightening regulations. Your fleet strategy
must account for both.
Technology Obsolescence Refuse vehicle technology evolves rapidly, particularly in:
• Emission control systems
• Fuel efficiency improvements
• Safety features and monitoring
• Diagnostic capabilities
• Operational efficiency systems
3-year lease cycles ensure you operate current technology
Regulatory Compliance Requirements continue tightening:
• Emission standards evolving
• Safety regulations expanding
• Environmental compliance
• Municipal contract requirements
• State and federal mandates
Leasing provides flexibility to adapt without being trapped in non-compliant assets Ownership locks capital into depreciating,
potentially obsolete assets
9. Side-by-Side Comparison
Factor
• Warranty Structure
• Year 1 Costs
• Year 2-3 Costs
• Technical Support
• Fleet Support
• Technology
• End of Term
• Capital Required
• Pricing on Additional Units
Ownership Reality:
• Split between chassis & body dealers - finger pointing
• Warranty provides some coverage, but coordination issues
• Escalating, unpredictable repair expenses
• Must develop internally or manage multiple vendors
• Limited to owned vehicles only
• Locked into aging technology
• Disposal challenges, uncertain residual value
• Significant upfront investment
• Standard retail pricing
RDK Lease Reality:
• Warranty Structure: Single point of accountability
• Fixed payment, full coverage
• Same fixed payment, all repairs covered
• Training provided, components supplied
• Available for entire fleet
• New equipment every 3 years
• Simple transition to new fleet
• Capital preserved for operations
• Preferred fleet pricing throughout partnership
10. The Real Question
It's Not Simply Lease vs. Purchase
The question is whether to shoulder the full complexity and risk of owning sophisticated refuse vehicles...
OR
...partner with an organization that assumes that responsibility while providing expertise, support, and pricing advantages that
extend across your entire fleet
11. Why RDK? - The Complete Solution
We Eliminate Pain Points:
• Warranty fragmentation
• Technical complexity
• Maintenance burden
• Financial unpredictability
• Technology obsolescence
• Disposal challenges
We Provide Value:
• Single-source accountability
• Complete warranty coverage
• Technical training & support
• Fleet-wide partnership
• Preferred pricing structure
• Operational focus
The RDK Difference: We don't just lease trucks. We transform vehicle acquisition from a capital-intensive ownership challenge into a
managed operational expense with predictable costs and superior support.
12. Next Steps
Ready to Discuss Your Fleet Needs? Let's explore how RDK's lease program can work for your operation.
Contact RDK Today - Let's build a fleet solution that works for you
For more information call one of our Lease Specialists Today!
813-241-0711