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Advantages of Leasing over Financing

After finding your ideal trailer or forklift, the next question is, "How am I going to pay for it?" You can opt for either leasing or financing when you don't have the cash at hand to buy the trailer or forklift outright.

What's the difference?

In layman's term, financing means you take out a loan to buy the trailer or forklift. You then make regular payments on the loan. Once you clear the loan, the item is yours. On the other hand, leasing involves making payments while you use the machinery for a set period of time. You're basically renting the equipment, just the way you'd rent an apartment. Both methods have their pros and cons. However, you do need a solution that gives you the greatest advantage in the long run.

Why should I go for leasing? Leasing equipment has many advantages. Let's look at three major reasons why it is your best option.

1. You make great savings

To begin with, you don't need to make a down payment. When you do make one, it's usually a relatively small amount. You're then able to make small monthly payments during the term of your lease. In addition, you don't have to pay sales tax.Leasing also comes with a tax advantage, simply because lease payments reduce taxable income since you're able to expense the entire lease payments when the business makes it.

2. You enjoy lower running expenses

A manufacturer warranty during your lease term cushions you from receiving a large, unexpected repair bill. You only need to focus on regular maintenance and the minimum amount of insurance required by the state. You're also in a position to upgrade to equipment with the most up-to-date features and technology every few years.

3. No hassle of selling the vehicle once you're done

When your lease term expires, you can opt to either return the trailer/ forklift or initiate a new lease for a different vehicle. In essence, you're saved from the hassle of getting a fair trade-in value or selling it yourself.

Another plus is that you only pay for the depreciation of the trailer or forklift that occurs during your lease term. This saves you from owing more than the vehicle is worth, commonly known as "upside-down."

Liberty Leasing & Equipment company has a long fleet that is available for rental or leasing options. You can check the inventory available at Country Supply, Inc to choose the equipment you need. Should you have questions, please contact us and we'll gladly help you with your current project. 

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