Full Service Operating Lease

In exchange for a lease payment, the customer has control of the asset. Infinity Transportation being the lessor will perform all maintenance on the asset. The customer pays one monthly payment to the lessor who handles all maintenance, taxes and insurance. The lease payment for the customer is treated as an ordinary expense. The lessor maintains ownership of the asset.

Lessee gives the Lessor payment at the beginning of the month for that month's rent.

Pros

  • Fixed payment amount
  • Least trouble administratively
  • Railroads give rate discounts for supplying own equipment if zero rated

Cons

  • Can be more expensive
  • Money changes hands earlier
  • Must manage fleet more interactively