From backhoes to loaders and every piece of heavy equipment in between, you could easily shell out hundreds of thousands of dollars at a time to invest in the vehicles you need in various industries. This option is not always feasible if you are just starting out, so leasing can be an attractive option. Even though you may have a basic understanding of how leasing equipment works, if you are like a lot of construction managers, you are unaware of the fine details associated with different types of heavy equipment leasing options. Here are a few leasing options that you may have through some financial outlets.
Open-Ended Financing Leases
The open-ended financing lease option is an attractive option for a lot of professionals because it allows you to make a piece of equipment yours if you decide to. Under these leasing terms, you can lease the equipment for as long as you need it, with the option to buy at a later date when and if you can. Some of these leasing agreements will be set up on specific duration terms.
For example, you may be given a lease agreement that stands good for six months and at the end of the six-month term, you will have the option to buyout the equipment or return it to the company. This differs from the traditional lease in the fact that at the end of the term, you will have a predetermined price to buy the equipment, whereas with a traditional lease, you will only have the option to return the vehicle or continue with a new lease.
Installment Loan Leasing
If you can pre-qualify with good credit and have either a substantial down payment or a piece of equipment for trade in, you may be able to obtain an installment loan lease agreement. This is a desirable option for many buyers because it allows a loan agreement with low-interest terms and flexible payment options that can be built to suit specific incomes. The only differentiating factor that makes this type of installment loan actually a lease is the company will still allow you to return the equipment if you choose that you no longer want to buy it.
With the right financing options and lease agreements, even a construction manager just starting out can have access to the heavy equipment needed to build their business. If you would like to know more about heavy equipment leasing options, talk to a leasing company representative, such as Westar Financial Inc, for more information.