Leasing Equipment From Your Vehicle Leasing Provider
by jimlive Posted on Thursday, November 2, 2017
“To lease or not to lease, that is the question.” With due regards to Shakespeare, that bit of paraphrasing seems to sum up the eternal dilemma facing business owners. Is leasing your vehicles the right decision? Or do you buy what you need to operate your business, investing massive amounts of capital into your purchases before dealing with the inevitable depreciation, maintenance costs and resale of your assets? There’s no right answer, but there are smart choices to be made that can save you money and make your business more profitable. Leasing vehicles is one of those choices. And if you’re working with the right fleet provider, so is leasing equipment.
Let’s be clear. Leasing equipment can be a strategic financial decision when dealing with asset management. Understanding the advantages of a great equipment lease is key. Take the open-ended leasing option for example. An open-ended lease can be a great advantage to any company considering commercial equipment leasing or vehicle leasing. An open-ended lease offers the lessee flexibility to customize any aspect of the lease, from term to depreciation to meet the demands of their business.
Let’s look at a vehicle lease or equipment lease in real numbers. If your company needs to buy an asset but there are no liquid funds to pay for it, utilizing your credit lines is an option, assuming your bank allows. If the asset costs $100,000, you’ll need to take out a loan for $100,000, plus the interest required to borrow the money. If you leased the asset, you wouldn’t have to borrow the full purchase price of the equipment; instead, you would only be required to borrow the amount the asset has depreciated over the term of your lease. If you took out a three year lease, and the asset had a fair market value of $60,000 after three years of usage, you would only have to finance that amount and would still have the option to purchase the asset after 12 months. It also leaves your credit lines available for other financial requirements.
Leases always have monthly payments. That’s the reality of commercial equipment leasing or vehicle leasing. However, this can help you keep up to date with the newest vehicles and equipment, and newer assets – whether it is a fleet of trucks, forklifts or large machinery – is much cheaper to maintain. A professional leasing company can inform you on the many advantages of leasing equipment and vehicles – while they help you lease your vehicle fleet. Learn more. Visit http://www.jimpeplinski.ca/.