How Equipment Leasing Works and What to Expect at Every Stage
There are many reasons you might have for leasing heavy equipment. You might be trying to expand services your company provides, maybe you’ve taken on larger jobs and you need more equipment to get the job done on time, or the equipment you have needs to be replaced.
No matter your reasons, leasing is very helpful for acquiring the equipment your business needs to function and grow.
This step-by-step guide will help you understand the entire equipment leasing process from start to finish. You’ll learn how leasing works and what to expect at every stage.
Start with Some Light Shopping and Price checking
Before you even start with leasing, you’ll need to understand the current equipment market. It’s a good idea to gauge availability and price range. Get out there and do some light shopping. Develop an understanding of what you need, how much it will cost, and what’s available. That way, when you go to make an offer, you’ll know if their asking price is too much.
Get a Lease Estimate for the Amount You’ll Need
Once you have an idea of how much you will need, you can get a free 60 second lease estimate. You’ll learn what to expect your lease payments to be.
Find the Equipment You Need
Now, it’s time to go shopping armed with the knowledge you’ve collected thus far.
As you’re perusing equipment, it’s important to look beyond the outer shell. It might look great, but that doesn’t mean it’s working properly.
- Test it out!
- Check the engine oil, transmission fluid, coolant, and hydraulic fluid. Is there any leaking oil?
- Has anything seized? Cycle the hydraulics and check the brakes while listening for any unusual noises.
- Are there excessively loose bushings or pins, wear strips or shims?
- Make sure you know the seller has the legal right to sell it and that it’s paid in full.
For a more detailed list, check out: 4 Used Equipment Buying Tips
Apply for a Lease
While banks often require a lot paperwork and can insist that you maintain minimum financial ratios, Thomcat Leasing only requires minimal paperwork.
It takes just 5 minutes to apply online for a lease! And approvals come through very quickly as well.
Negotiate Your Deal with the Seller
There are 4 tips you need to know when you’re getting ready to negotiate with a seller.
- Do your research. Know what you’re looking for, who’s selling it, and what a fair asking price is. Don’t be afraid to bring your research with you to back up what you’re saying.
- Ask questions. You’ll want to know about the condition of the equipment and how much it’s been used and for what. Ask the seller to back up any claims he or she makes of maintenance or replacement parts with proof.
- Don’t be afraid to go extreme. Just because you know what a fair asking price is, it doesn’t mean you should start the negotiations there. Start with a low offer and see what happens.
- Don’t feel pressured. Just take your time and don’t be afraid to walk away if the deal isn’t fair.
Get your deal done!
Send All Deal Info to Thomcat Leasing
Once the sales terms are finalized, get the seller to send an invoice to Thomcat Leasing. A lien check is performed on the equipment to ensure that everyone is protected and no scams are happening.
Full payment will be sent to the seller and the equipment is now yours to use!
Receive Your Equipment
Thomcat Leasing will help you arrange shipping and US customs brokering if necessary. Any of these costs can be included in the lease.
Start Making Your Lease Payments Per Your Schedule
Over the next 3 – 5 years, you’ll be paying off your equipment lease in small manageable payments. While leveraging every bit of value from your equipment. The income this brings to your business should easily outweigh the leasing costs.
Did you know with Thomcast Leasing, you can schedule your monthly payments so that you pay based on the seasons of your business? That means you match your lease payments with your companies natural cash-flow changes through the year. Why pay for a piece of machinery when it’s not making you money?
Also, if 3 – 5 years of paying off equipment sounds scary to you – don’t worry. You can always upgrade to new equipment anytime. Or simply return the equipment if it’s not longer working out for you.
End of Lease Options
It’s always exciting when your lease term comes to an end. There are 4 main end of lease options:
- Take 100% ownership
- Continue Renting
- Return it
Check out “Choosing Your End of Lease Option” for more info.
Now You Know How Equipment Leasing Works!
Equipment leasing in your business is a safe and easy way to acquire the equipment you need to function and grow. Bookmark this handy step-by-step leasing guide so that you can refer back to it as you progress through your lease term.
Thomcat Leasing is there to ease your stress. Their process is quick and easy. It’s great because the sooner you get your equipment, the faster it can start making you money!