Used Freightliner & Select Trucks

Subject: SelectLease FMV Fleet Lease option - UPDATE

For 2006, Kansas City has taken significant steps to further enhance SelectLease, the industry’s only used truck Fair Market Value (FMV) lease option.  

• NEW!! Lower Monthly Payments: As low as $724 per month, on a 24-month term lease.

Here’s a look at the overall impact:

As announced in the September 30th, 2005 option release:

• Tire Installation (ask one of our sales reps about our low cost alternative to recaps)

• Warranty Coverage: Each vehicle includes our industry exclusive Buyer’s Assurance 30-day coverage, and for an introductory period. (ask one of our sales reps about additional warranties available)

SELECTLEASE Fleet Finance Lease option

option Details

SelectLease – Description

• SelectLease is a used truck Fair Market Value (FMV) lease, commonly referred to as a closed-end lease, targeting creditworthy fleets.

 Lessor/Lease Structure

• At the time of contract funding, DCS becomes the “Lessor” of the vehicle and the customer becomes the “Lessee” of the vehicle.

               - SelectLease maximum monthly mileage with no penalty is 11,000 miles per

                Month for the term of the contract. Vehicles that exceed this amount will be

                 subject to a $0.05 per mile mileage adjustment at maturity.

 Important Note:  Potential mileage adjustments to the customer if their estimated yearly mileage is over 132,000 per year –

Lessor/Lease Structure continued

- DCS is the legal owner of the vehicles during the lease period. As such certain applications may not qualify for this option, including the transportation of certain high risk / high security loads such as hazardous materials. Contact DCS with any questions on this issue.

 - At lease maturity the Lessee will have the opportunity, but not the obligation, to

purchase the vehicles. FMDC will determine the selling price (FMV) just prior to

the time of lease maturity. 

- The vehicles must meet specific out-of-service conditions as outlined in the

lease agreement. These lease turn-in conditions will be the full responsibility of

the Lessee. Please see Schedule C: SelectLease – Mechanical and Physical Condition Turn-In

 Eligible Fleet Lessees / Transaction Size

• The option is available for fleet customers:

- Owning 10 or more units, or

- On transactions that will bring the total fleet size to at least 10 units

 • Only Platinum, Premium, and Preferred credit fleet applicants will qualify for

consideration under this option.

Down Payments/Lease Terms

• Normally, the Lessee will be asked to make the equivalent of the first and last rental payments in advance, as capitalized cost reduction.

• This capitalized cost reduction may be lowered or waived by DCS based on the

fleet’s creditworthiness.

• Subsequent to the capitalized cost reduction, if one is required, all rental payments will be made in arrears.

• Five lease term lengths are available: 24, 27, 30, 33 or 36 months.

 Warranty

Lease Turn In Truck Condition

Used Truck FMV Lease Agreement