A major benefit of Full maintenance leasing is that
the funding provides for off balance sheet financing and the monthly rental is treated as an operating expense.
The operator can charge the monthly rentals directly against profits as a deduction for tax purposes.
VAT is not capitalised and is charged on the monthly rental, which means lower monthly payments.
VAT tax inputs can also be claimed on the deemed operating cost portion of the monthly payments.
FML benefits include:
• There is no capital outlay when entering into an FML contract
• Full maintenance leasing provides fixed cost motoring for the full duration of the contract
• There is no depreciating asset on your balance sheet
• FML provides off-balance sheet funding which improves asset and gearing ratios
• Monthly FML payments are fully tax deductible as operating costs thus being a tax benefit
• VAT input credits can be claimed on the maintenance costs on passenger vehicles
• Full VAT amount is recoverable on commercial vehicles and Ldv’s
• Phakisa Fleet Solutions controls the full administration function for the leased vehicles including licensing and traffic fine administration
• Phakisa Fleet Solutions fleet discounts are passed onto customers
• Authorisation and payment on maintenance and repairs are handled by Phakisa Fleet Solutions
• The purchase and disposal of the vehicles is managed by Phakisa Fleet Solutions
• Phakisa Fleet Solutions provides comprehensive fleet management reports for customers on fleet performance
The Phakisa Fleet Solutions Operating Lease excludes maintenance
and provides for vehicle usage at low monthly premiums without the risk of ownership.
The rental is fully tax deductible as operating expenses and provides for off balance sheet funding.
The finance and resale risks are carried by Phakisa Fleet Solutions and you have the option to take ownership
at the end of the operating period. Phakisa Fleet Solutions will also quote to purchase your existing fleet from you
and lease the usage of the vehicles back to you.
Although Operating Leases exclude maintenance, Phakisa Fleet Solutions provides a managed maintenance service as part of the package.
Phakisa Fleet Solutions screens all maintenance authorisations on behalf of the customer, ensuring that only manufacturer-approved work
is authorised. The costs of maintenance are paid by Phakisa Fleet Solutions and added to your monthly statement.
OML benefits include:
• Usage without risk of ownership
• No capital outlay required
• Improved cash flow
• Rentals are fully tax deductible as operating expenses
• Off balance sheet funding
• Full VAT amount is recoverable on commercial vehicles and L.D.V’s
• VAT is paid on monthly rental and is not capitalised
• No vehicle disposal risk
• Ownership can be negotiated
• Maintenance is managed by Phakisa Fleet Solutions
• Consolidation of maintenance and rental billing provides cost effective administration
Phakisa Fleet Solutions will assist you in reducing the maintenance
expenditure on your fleet as part of a fleet management service.
The “Phakisa Fleet Solutions Managed Maintenance Service” ensures that only necessary maintenance is conducted
on your vehicles and that only authorised maintenance costs are incurred in the operating expenses of your fleet.
The service will also reduce the administration associated with maintaining your fleet including issuing of orders,
checking of invoices and negotiating payments and discounts with repair workshops.
Specially trained technicians manage the Phakisa Fleet Solutions Maintenance call centre service lines ensuring that
the necessity of all maintenance work is pre-vetted against manufacturer recommendations and the Phakisa Fleet Solutions
maintenance database before work is approved.
Managed Maintenance benefits include:
• Phakisa Fleet Solutions will scrutinise job card parameters before approving maintenance work
• Phakisa Fleet Solutions will check the job card and invoice accuracy before settling payment with the workshop
• Phakisa Fleet Solutions will provide you with a single VAT invoice on a monthly basis for the whole fleet
• Our management reports track and analyse fixed and variable cost on each vehicle
• Exception reporting highlights any vehicle or driver that exceeds your policy parameters
• Monthly fleet reports assist with effective cost centre management of your fleet
• Drivers no longer have to carry the costs of service payments
• The Phakisa Fleet Solutions Managed Maintenance Service reduces the administration burden associated with maintaining your fleet
• Will deliver improved controls and cost saving benefits by reducing unnecessary repairs and maintenance expenditure
• We will provide you with a consolidated maintenance bill on 30-day payment terms
At Phakisa Fleet Solutions we take special care of our customers
through our Fleet Accident Management service (FAM). FAM will manage the complete repair process and
reduce the administration burden surrounding accidents and vehicle insurance claims.
This service takes care of the full repair process as well as managing and taking control
of every aspect of accident administration including:
• Authorised towing services
• Provision of replacement vehicles
• Liaison with broker, Insurance companies, assessors and 3rd party
• Qualified staff to evaluate every repair estimate
• Distribution and Management of Accident repair forms
• Authorisation of agreed repair work
• Priority service at approved repair workshops
• Organisation of inspections where necessary
• Arrangement of all claims adjustments and settlements
• Third party claims adjustments and settlements
• Third party claims and uninsured loss recovery
• Reporting on accident history for insurance premium bonuses
• Reporting on the cause of accidents to enable the facilitation of risk management
FAM benefits include:
• Ensuring repairs are of a high quality
• Reduce the time your vehicles are out of action
• Keep the total cost of an accident to a minimum
• Ensuring mobility through replacement vehicles
At Phakisa Fleet Solutions we take special care of our customers through our
Fleet Accident Management service (FAM). FAM will manage the complete repair process and reduce
the administration burden surrounding accidents and vehicle insurance claims.
Phakisaworld provides a facility to procure fuel with two options:
• E-Fuel – This tag that is installed on permanently allocated fleet that will allow for fuel
to be procured when vehicles travel in an area of suitable coverage. This mechanism has been installed
into vehicles to assist National User Departments with managing abuse and misuse of fuel.
• A fuel card is issued to vehicle containing vehicle description, color of vehicle, tank capacity
and validity of card. This card is used to procure fuel, top up oil, and access through toll gates.
This fuel card may not be used for any other purchases apart from what is covered on the fuel card itself.
• National User Departments are required to keep the fuel cards safe at all times and ensure that kilometers
at point of sale are recorded accurately and correctly to prevent any fraudulent activity.
• These facilities allow our customer the ease of operation of a 24/7 service availability anywhere within the borders RSA.
Our comprehensive vehicle database allows us to manage license renewals proactively on the behalf of customers.
In addition, the Internet reporting options make the information available to our Fleet Managers.
This together with the comprehensive Avis license administration systems will avoid drivers running the risk of driving unlicensed vehicles.
Will the AARTO license demerit system become a problem for your company?
Contact Avis to discuss how we can work with you to use our Fines Management system to assist. We have many years experience in the area and are well equipped to provide recommendations.
Some of the issues that need consideration are:
• Management of drivers license information
• Management of vehicle registration information
• Fines management and recording
• Demerit points management of drivers
• Issuing of vehicles to unlicensed drivers
The Phakisa Electronic Fuel Card provides your drivers with a convenient credit card for purchasing fuel,
while providing you with an effective means of controlling & monitoring fuel usage.
• Petrol & Diesel can be purchased on the card.
• Top up lubricants and
• Toll fees can be paid via the card.
Fuel Card benefits include:
• The convenience and added security of not having to carry cash
• Accepted nationwide at all major fuel company service station outlets
• No driver out-of pocket fuel expenses necessary
• The card is linked to the vehicle registration
• Consolidated monthly management summaries track fuel usage by vehicle & transactions per card
• Exception reports highlight vehicles & drivers operating outside of fleet parameters
• Transaction information can be provided via secure Internet access within 24 hours of transaction processing
• A Fuel Management Software Package is also available to help customers maintain and manage their fleet's fuel data
• New cards are dispatched directly to your door within 72 hours
• Nominal card fee with built-in card insurance protection
• Consolidated monthly billing allows for one payment to Avis for all your mobility requirements
• Provides for less administration & better expense controls
