When fleet men gather, one of the most topical subjects that pops into the conversation is the subject of leasing. With approximately 900,000 cars in lease service-and the number growing daily-leasing cannot be ignored either by the businessman, the salesman or the fleet administrator. It demands study from top management down to the individual driver.

The growth of all forms of leasing-heavy equipment, autos, and machine tools-was inevitable under existing company capital requirements for current business investment, the federal tax structure and the competitiveness of the many leasing companies. Leasing offers a myriad of possible advantages. Lease obligations don't have to be disclosed on a company balance sheet. There's the possibility of tax advantages in renting rather than buying. And, in addition to freeing certain capital funds for investment, there may be greater flexibility in leasing rather than buying.

While the growth of leasing is inevitable, the degree of growth and the reputation of leasing firms in the auto field depends, to a great extent on the manner in which the lease arrangement is presented and sold.

In discussions with fleet managers and administrators, I find a growing indifference to the leasing salesman. These already under a lease plan have found that their own fleet management influence has been weakened as the result of the lease company taking over some of the primary duties of fleet administration. The fleet man is often caught between the leasing company recommendations and his own. A degree of job security is at stake.

The fleet man who is investigating the possibility of switching from company ownership to leasing often finds it a thereat to his responsibilities. Too many leasing companies, unfortunately, choose to bypass the fleet administrator, going directly to top management. They feel they can do a more effective job of selling.

I believe that auto leasing companies would have a better opportunity for growth if they would work hand-in-hand with the fleet manager. They should clearly and sincerely spell out the effect on his responsibilities should leasing become a part of his business. This would include what areas of influence he would give up and what new responsibilities he would acquire. Presentations should be made to top management with the fleet administrator participating.

By the same token, the fleet man must cooperate and recognize that if his company is interested in exploring the possibilities of leasing, a thorough, unbiased and comprehensive study is called for. The only way the fleet manager can build his own statute is to accept the challenge of leasing or any other fleet management decision and work towards the best interests of his company.

Remember, the decision to own or lease is an individual one. While there are definite advantages in leasing there are also drawbacks. With better understanding and cooperation between fleet managers and leasing companies, we can expect a more important role in decision-making for the fleet manager and at the same time meet the leasing question to the benefit of all concerned.