In order to remain competitive, today’s lessors, particularly in the automobile leasing industry, often structure floating rate lease contracts where lease rentals are tied to economic indices. The LeaseWave® auto leasing software system’s floating rate module is a powerful tool for lessors who peg their lease payments to market interest rates and other fluctuating indices, making the LeaseWave® system a comprehensive equipment and vehicle leasing software. The floating rate function of the vehicle leasing module allows users to set up any number of different floating rates and manage them centrally as templates. These rates can then be associated with the relevant leases and designated to work within lease-specific constraints. Moreover, the historic movement of each rate is tracked to facilitate date-sensitive analysis and calculations. When the rates change, one single update to the central templates affects all associated leases instantaneously, reinforcing the LeaseWave® auto leasing software system’s development ethos as an extensive, yet easy-to-use, equipment and vehicle leasing software.
For example, users can set up "T-Bill" as a rate. The rate changes to this particular rate are tracked and updated independently. Every time an update occurs, all the leases that have payments associated with the T-Bill will automatically calculate their payment changes. If required, customer invoices can clearly show the float rate payments as separate from the regular lease payments; alternatively, they can be blended with the lease rentals. This capability allows LeaseWave® users to set up complex lease structures, making the application a sophisticated equipment and vehicle leasing system.