Daimler Truck Financial has introduced a pay-as-you-drive lease financing solution that uses telematics to track vehicle mileage and allow payments to vary based on how much the truck is actually working, an approach that Daimler Trucks North America (DTNA) said is a first in the industry.
The new Dynamic Lease uses the embedded Detroit Connect Platform and debuts on the Freightliner Cascadia spec’d with Detroit engines. It will be released late in the first quarter of 2020 and will help customers better manage cash flow by aligning billable miles to the lease payment.
Speaking to reporters at the North American Commercial Vehicle Show Oct. 28 in Atlanta, Daimler Trucks North America President and CEO Roger Nielsen noted that while the company has a long history of making trucks, “we address all parts of the customer journey. Customers ask, ‘Can I afford to grow my fleet? What happens if the demand for freight falls? Can Daimler help me mitigate my risks in this economy?' Of course we can.”
The answer is a product that lets customers personalize their truck financing based on utilization, he said. It uses embedded telematics to track truck mileage and provide pay as you drive lease financing rates.
“Dynamic leasing is not just ideal for the present market,” Nielsen said. “It is the future of truck financing.”
“The Dynamic Lease offers our customers an incredible amount of flexibility to manage their business and is a great complement to our other products,” said Tobias Waldeck, head of Daimler Truck Financial. “There is a minimum payment embedded,” he explained, “just like your cell phone, and a variable piece as well.”
Although it is being launched only in the U.S. on the Cascadia initially, he said, the company will look at adding it to other models such as vocational, as well, and eventually expand into Canada.
“Customers asked for it,” Nielsen said. “It’s tangible proof we are looking at the complete customer journey and positions our customers to smart finance the next generation of commercial trucks.”
At NACV, Daimler also:
- Teased the next-generation heavy-duty Detroit DD15 Gen 5 engine (available 2021), which it said will boost fuel economy and lower CO2 emissions for the Class 8 market.
- Announced that the DT12, Detroit's automated manual transmission, is improved for 2020 with higher overall ratios that will contribute to fuel-efficiency improvements and provide better low-speed maneuverability. New side Power Take-Off (PTO) capabilities allow increased flexibility and expanded application coverage.
- Hinted of a new Western Star model in the works.
- Launched Excelerator, a new e-commerce platform to streamline the parts ordering process and speed order fulfillment time.