Beta: shortlease contracts are new in RentVisie and are released as a beta.
Introduction
Profitability on a shortlease contract opens a pop-up headed Profitability · and the customer, with the lease amount per month and Amounts excl. VAT at the top. Under that are three key figures: Margin per month, Expected contract result and Result so far. Then come the block Break-even per month, a bar showing what the lease amount pays for; Contract result, realised against the forecast; and Per month, a bar chart of the last months. A similar pop-up exists for an asset as a whole.
You would be here because:
- a customer asks for a lower monthly price and you want to know how low you can go
- you want to check that a lease taken at a special price still covers the vehicle
- you are deciding whether to buy another van for leasing
- a quarterly review asks which leases earn their keep
Words this screen uses
| The screen says | It means |
|---|---|
| Depreciation | The part of the purchase price written off each month |
| Book value | What the vehicle is still worth on paper |
| Break-even | The monthly amount at which the lease just covers the vehicle's cost |
| Margin | What is left of the lease amount after the vehicle's monthly cost |
| Return per year | The yearly result as a percentage of the purchase price |
| Earned back | How much of the purchase price the vehicle has earned so far |
How to use
Configuration
The figures come from what is already recorded on the vehicle. For reliable figures:
- the vehicle has a financial profile with purchase price and depreciation (see Record a vehicle's purchase price and depreciation);
- its insurance, road tax and financing are entered as planned costs (see Set up costs that repeat by themselves);
- garage bills are entered as costs (see Record what a vehicle costs you).
Before you start: only a company administrator sees Profitability.
Using the Profitability pop-ups
For a contract. Open the contract: on the booking click Shortlease contract, or open it from the Shortlease overview. Click Profitability among the buttons at the top.
- Read the three key figures. Margin per month is the lease amount minus the vehicle's monthly cost, in euros and as a percentage. Expected contract result is the forecast to the end date (up to a date), or 12 months ahead for an open-ended contract. Result so far is what was invoiced minus the vehicle costs so far.
- Read the break-even. The bar is the lease amount, split into Depreciation, Planned costs (insurance, tax, financing), Maintenance and repairs and the margin. The rows below give the amounts; no history means there were no maintenance costs in the last 12 months.
- Read the contract result. Invoiced and Vehicle costs as bars against what was expected by now, with the sum written out: Expected: revenue − costs = result.
- Read the chart. Per month, the bars show Invoiced and Vehicle costs, with the Planned lease amount as a dashed marker, for the last 12 months and up to 6 months ahead.
- Click Close.
For an asset as a whole. On an item on the Other tab of the fleet list (not a car or van, see Q&A), click Profitability at the top of its record, next to Bookings (shown once your company has switched shortlease on, or has shortlease contracts). The pop-up shows Purchase price, the day it was Bought and Book value, then Result since purchase, Return per year on the purchase price, and Earned back in so many months (not yet while it has not). Below that are Cost per month (what a lease has to cover), Since purchase (revenue, fines left out, against all costs) and a chart of the last 12 months.
Key details
What counts as the monthly cost. Skim the table once:
| Part | How it is worked out |
|---|---|
| Depreciation | (purchase price − residual value) ÷ useful life in months; 0 when depreciation is off or the vehicle is sold |
| Planned costs (insurance, tax, financing) | Each planned cost running now, per month: quarterly ÷ 3, yearly ÷ 12; one-off costs left out |
| Maintenance and repairs | The average per month of the other costs over the last 12 months (or since purchase) |
All amounts are excluding value-added tax (VAT). The purchase price itself is not added again on top of the depreciation.
A worked example. Lease amount €1,200 per month. The van cost €30,000, with €12,000 residual value over 36 months: depreciation €500. Insurance €1,200 a year is €100 a month, road tax €300 a quarter is €100: planned costs €200. Garage bills averaged €80 a month. The monthly cost is €780, the margin €420, or 35%. At €750 a month the lease would fall below cost and the pop-up would warn: The monthly amount does not cover the vehicle's monthly cost.
How the contract forecast is built. Expected contract result takes the lease amount for each month up to the end date (or 12 months ahead) and takes off the vehicle's monthly cost for those months. Result so far counts only invoiced periods, against the vehicle costs booked while the vehicle was on the contract. In the chart, the dashed marker in a month is the lease amount of the regular periods planned to start in that month.
How the asset figures are built. Result since purchase is the asset's invoiced revenue, fines left out, minus all its costs including depreciation. Earned back compares revenue minus running costs, with depreciation left out, against the purchase price.
Vehicle costs follow the vehicle dates. After a vehicle change or swap, each vehicle's costs count only for the days it was on the contract (see Change or swap the vehicle on a shortlease contract).
Without a financial profile the pop-up says the figures are incomplete: The vehicle has no financial profile (purchase price, depreciation), so its costs are incomplete.
What to do next
If the margin is too thin, change the price from a date, as described in Change prices, extras and indexation on a shortlease contract.
Q&A
Why is the margin so high? It looks too good. Costs are missing: no financial profile, or insurance and tax are not entered as planned costs. Check the yellow note at the top and the rows under Break-even per month.
Why is there no Profitability link on a car's record? The link is on the records of items on the Other tab of the fleet list only. For a car or van, open Profitability on its shortlease contract.
Why does Result so far say "nothing invoiced yet"? No period of the contract has been invoiced yet.
Why does Maintenance and repairs say "no history"? No costs other than depreciation and planned costs were entered for the vehicle in the last 12 months.
Related pages: Record what a vehicle costs you and Read a shortlease contract and its billing schedule.