Automotive Fleet
MenuMENU
SearchSEARCH

Small Delivery Fleet Chooses Full-Service Leasing Option

This delivery service fleet opted for full-service leasing to maintain its trucks and reduce the stress of unexpected repairs.

Amy Hercher
Amy HercherFormer Senior Editor
Read Amy's Posts
July 25, 2014
Small Delivery Fleet Chooses Full-Service Leasing Option

One of Bailey's trucks has become a popular photo-op for Denver Broncos fans. Decorated with the Broncos colors and logo, this Kenworth truck delivers the team's equipment.

Photo: Bailey 

3 min to read


With 18 to 25 deliveries per day, regular maintenance is essential to keeping Bailey’s Logistics’ delivery trucks on the road.

Part of Bailey’s Moving and Storage, the logistics department’s 50-vehicle fleet is spread between its four U.S. locations, including Denver, Oklahoma City, Salt Lake City and Birmingham, Ala.

Ad Loading...

Initially owning all of its trucks, the wear and tear from stop-and-go driving was leading to serious maintenance issues by 200,000 miles — or in some cases 175,000 miles. For Chad Johnson, this meant more instances of breakdowns and higher maintenance expenses.

“Our mechanics couldn’t keep up and trying to budget for transportation became a guessing game — repairs were getting out of hand,” says Johnson, who serves as Bailey’s executive manager. “And equipment reliability began to affect our performance. If we missed a delivery day due to an out-of-service truck, that meant calling customers and working with them to reschedule.”

Leaning into a Full-Service Lease 

To reduce maintenance costs and better meet DOT regulations, Johnson decided to go with a full-service lease.

Additionally, leasing helps from a budgeting perspective.

“We have our lease payment and can budget appropriately,” says Johnson. “Before, we couldn’t really budget. If one of our trucks broke down, we’d have to call around and get the vehicle towed and then find a replacement vehicle. And who knew what the monthly repair bills could be?”

Ad Loading...

Currently, Bailey’s Logistics’ fleet is made up of all leased vehicles — a 50/50 split of Hino 268s and Kenworth T270 trucks.

In the face of several potential leasing companies and truck options, how did Bailey’s choose a lender and the appropriate trucks to fit its delivery needs?

After using one truck leasing company for several years, Johnson wasn’t completely satisfied with the service provided. To begin the selection process, he started reaching out to other vehicle leasing companies.

MHC, a PacLease franchise in Denver, provided Bailey’s with Hino and Kenworth trucks as long-term rentals. These “test drives” provided drivers with the opportunity to drive the trucks during their daily deliveries and then report their feedback, according to Johnson.

By test driving several truck models — including International, Freightliner, Hino and Kenworth — for three to six months, Bailey’s was able to assess each truck’s performance, maintenance expenses and miles per gallon.

Ad Loading...

In the end, the Kenworth T270 Class 6 truck topped the competition with the fewest maintenance issues and highest miles per gallon — while hauling Bailey’s daily delivery weight.

After renting the Kenworths for six months, Bailey’s signed a lease contract with MHC for three Kenworth T270s. In 2013, Bailey’s added 10 more Kenworth T270s to the Denver fleet, two more to the Salt Lake City fleet and five more in Oklahoma City.

Working with MHC, Bailey’s closed-end, 48-month leases include a two-year opt-out clause, according to Johnson. “Most of our work involves contracts, so we don’t want to be tied into a lease for an extended amount of time.”

To keep the trucks up and running during the lease period, MHC’s full-service lease includes regular scheduled maintenance checks.

Every two weeks, MHC comes out to Bailey’s work site to take care of smaller maintenance issues, such as replacing windshield wipers or light bulbs, according to Johnson. For more thorough maintenance checks, MHC will take the trucks off-site for repairs.

Ad Loading...

Additionally, MHC provides Bailey’s with metrics and data on each truck after a trip to the shop. “It gives information on miles per gallon, idle percentage readings and hard-braking reports,” says Johnson. “If we can increase miles per gallon and decrease idling time, overall it helps us to reduce expenses.”

Originally posted on Work Truck Online

Subscribe to Our Newsletter

More Leasing

Two shot of standing interview
Leasingby Chris BrownApril 23, 2026

What’s Really Happening in Fleet Supply Right Now

Fleet supply has improved, but not everywhere. Merchants Fleet’s Charles Matthew explains where constraints still exist, what risks are emerging, and why fleets shouldn’t wait to place orders.

Read More →
Photo of Matt Dyer
Leasingby Chris BrownApril 8, 2026

These Edges Are Measured in Inches — Matt Dyer on Fleet’s New Normal

The Merchants Fleet CEO contends that fleets that drive the business win the inches. In 2026, every one of them counts.

Read More →
Remix of financial photo and row of cars.
Leasingby Chris BrownJanuary 1, 2026

Who Gets a Company Car? (In 2026 and Beyond)

As costs rise and scrutiny increases, fleets are refining criteria that govern eligibility for company-owned vehicles.

Read More →
Ad Loading...
A black CUV tilted downward on stacks of descending gold coins.
Leasingby News/Media ReleaseDecember 29, 2025

DriveItAway Holdings, Free2move Launch Operations In Nine Cities

The co-branded program with Stellantis’ mobility division scales up leasing and financing options nationwide with more cities to come online in 2026.

Read More →
Honorees gather on stage for a photo.
Leasingby Chris BrownSeptember 30, 2025

AFLA 2025 Conference in Pictures

Drawing over 640 attendees, the 2025 AFLA Annual Conference was held Sept. 14-17 at the JW Marriott Marco Island Beach Resort in Florida.

Read More →
An app user looks at her smartphone near a row of vehicles.
Leasingby News/Media ReleaseJuly 22, 2025

DriveItAway, Free2move Partner to Expand Vehicle Access for Dealers

The arrangement enables franchise dealers to offer flexible lease-to-own programs with no credit checks, no down payments, and no long-term commitments.

Read More →
Ad Loading...
Graphic of performance survey
Leasingby StaffJuly 16, 2025

New Survey: How Well Are FMCs Serving Fleets? We Want Your Input

Fleet managers: Share your experience to help benchmark fleet management companies’ service, strategy, and support.

Read More →
Headshot of two executives
Leasingby Chris BrownJuly 14, 2025

Enterprise Fleet Management Enters Its Next Leadership Chapter

With Brice Adamson’s retirement, EFM hands the reins to Bryan Taylor. How will the company sustain its momentum in a changing fleet landscape?

Read More →
A collage of award recipients with the text "NVLA Honors Leasing Leaders".
Leasingby StaffApril 24, 2025

Celebrating Excellence in Leasing: NVLA’s 2025 Award Honorees Drive the Industry Forward

NVLA presented awards to four leaders whose vision, service, and innovation continue to shape the future of the vehicle leasing industry.

Read More →
Ad Loading...
Remarketingby Martin RomjueApril 2, 2025

New, Used Vehicle Markets Solid but Facing Tariff Uncertainty

CAR 2025: A JD Power expert ties together the leading automotive sales and supply trends among vehicle buyers facing the disruptions of impending tariffs this month.

Read More →