What financial implication does leasing have on fleet ownership?

Leasing a fleet of vehicles typically means that the lessee does not have full ownership rights, which is a significant financial implication. When you lease a vehicle, you are essentially renting it for a specified period and paying for its use rather than purchasing it outright. This arrangement reduces your total control over the asset because you cannot modify it as you would if you owned it. Additionally, the lease agreement usually comes with restrictions on mileage, condition, and customization of the vehicles.

In this context, while leasing can provide advantages such as lower upfront costs and potential tax benefits, it also means that the lessee must adhere to the terms set by the leasing company. This affects decision-making and operational flexibility concerning the fleet. The other options do not accurately capture the implications of leasing; for example, leasing does not provide ownership rights, usually does not directly increase insurance costs more than ownership would, and generally does not eliminate maintenance responsibilities, as many leases still require the lessee to maintain the vehicles to specified standards.