Leasing- What to look for.

[Bishop's]

Things to look for and look out for when leasing

1.) Payments- When you shop for equipment you shop for the best equipment at the best price. Right? Same goes for leasing. Always compare at least 2 lease companies. When shopping make sure you are comparing apples with apples and oranges with oranges. Find out your total payments will be over the term, the residual, plus any documentation fees.

2.) Residual- always do a $1.00 or a 10% buyout. Never sign a lease that is open ended such as approximately 10% or a FMV. The payment may be a little lower but they get you in the back end. Always get the residual in writing.

3.) Understand what you are signing. If you don’t understand have a CPA or a lawyer take a look.

4.) Special programs- All lease companies have special program such as 90 or 120 day deferred, seasonal etc. These are good programs, but be careful; some lease companies use these special programs to build in hidden cost. Compare these programs with a standard program and you might find you are paying much more in a long run.

This was a re-post from 2003