Want to know all your options?
“Get another quote” is often the recommended advice when making a large purchase and “Get another opinion” when making a medical decision. The same advice can be applied to a lease contract. You don’t have to accept the lease contract offered by the Equipment Vendor; you can shop it.
A lease quote only provides part of the information you need while an opinion will give you “the rest of the story”. Therefore, it is preferable to get both the monthly payment and additional information on the business practices of the lessor.
After all, when a business owner signs a lease agreement, they are committing to a 2-5 year relationship with the leasing company. While there are 3 basic categories of lessors, (Independents, Captives, and Brokers), there are other factors to consider:
- Are there Surprise fees and hidden Costs?
- What are the return conditions?
- Do they offer flexible contracts?
- How is their customer service?
Additional fees can include “forced” insurance premiums, property tax filing fees, End of Lease automatic renewals of a minimum of 6 or 12 months, and late fees at 1 day past due, as outlined in this chart. (https://www.clune.net/total-cost-comparison.php). As you can see, these costs can be substantial.
Will you need to notify the company 90 or 120 days in writing of your intention to return the equipment at the end of the lease term? Are there onerous shipping instructions which must be followed or you risk facing extra penalties?
If you have a seasonal business and would like a progressive or balloon payment schedule, can this be had? Would you prefer a different term length than what is offered?
Finally, what is the responsiveness of their customer service? As the creditor, the lease provider should be able to answer all questions concerning payment schedules and contract terms.
Let us know if Clune/Landmark can be of service.
It is the Lease we can do,
Kevin F. Clune, CLFP
Clune & Company, A Division of
Landmark Financial Corporation
