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Many people choose to lease heavy equipment because it can be cheaper than purchasing. While heavy equipment leasing may make a lot of sense, leasing is not for everyone. This web page is devoted to helping you decide whether you should lease or purchase your next piece of heavy equipment.
As you consider whether or not you should lease heavy equipment, there are a number of questions you should ask yourself.
- How long will I need the equipment?
- How much wear will I put on the equipment?
- What size down payment is expected in the heavy equipment leasing plan?
- Would my monthly payment be cheaper if I opted for used equipment instead?
Leasing Advantages. There are several advantages to leasing heavy equipment:
- Lower monthly payment. Because you are only paying for your usage of the heavy equipment, your monthly payment will be much lower than purchasing.
- Lower sales tax. When you lease heavy equipment you always will pay less in sales tax since you are only paying taxes on the amount you use.
- Low or no down payment. The amount of your down payment will depend on your lease plan. Be extremely wary of high down payments!
- Tax Write-off. If you use your leased equipment for business purposes it can be a huge tax write-off.
Leasing Disadvantages. While there are advantages to leasing, there are also several disadvantages:
- You never own the equipment. At the end of your lease agreement, you will give your equipment back and get nothing in return. If you choose to lease another vehicle, you may have to make another down payment.
- If you need to terminate your lease, it can be very difficult to get out of.
- If you put more wear on your heavy equipment vehicle than you expected to pay for, you can get hit with a heavy expense at the end of the lease.
- If you have poor credit, leasing can be extremely expensive.
- If buying used heavy equipment is an option, it can save you even more money.
Equipment Leasing Companies. There are many companies who offer leases on heavy equipment. They include CIT Group, Access Equipment Leasing, Direct Capital, and more. There are also companies that offer to compare lease rates from different companies in order to give you the best rate. A few include Buyer Zone, All Options, iBank, and more. You can also get lease rates from through your heavy equipment manufacturer.
For the most complete information on heavy equipment, please browse the rest of our site or click on our home page.
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