AXIS Capital Group, Inc., Nebraska: Lies Heavy Equipment Finance Companies Tell You
Heavy Equipment Financing Rates from 5.5%
You will realize this is marketed all over the internet. Various leasing companies quote heavy equipment financing rates at 4.9% or 6%, however those rates are almost always a fraud.
The reality is you can get rates like that if you finance via dealer, who is going to make sufficient money selling you the equipment to work the cost of under market rate financing into the price of the machinery - nonetheless only if you've got flawless credit, great revenues and time in business.
Equipment financing is not low-priced, since default rates are expensive. The only approach a lender can be in business is to bid rates that are great enough that not one person who advertises their rates would ever get their websites clicked on. For "reasonable" risks rates go from 8 to 20 percent or so, for dangerous situations the rates are greater than that.
Heavy Equipment Leasing at $2,600 a Month for $100,000 of Equipment
You'll find that they will all show you a range of payments within $100 or so of $2,600 if you go into $100,000 for 4 years into 15 equipment leasing calculators on the internet. Those payment amounts are all totally bogus.
The only time those payments mirror truth is when you'd just get low-priced financing from the dealer anyway. You must have at least 2 years in business, a few million in annual revenues, good productivity, and have a minimum of 720 credit score.
Bait and Switch - Stating You Own the Equipment at the End When You Don't
This occurs greatly in the industry. Some dishonest people will quote a payment for a lease at the finale and inform you that's a contract where you own the equipment at the end for a final payment of $1.
There are occasions when the person tells you it's a $1 takeover and hope you don't read the contract, and there's times when the contract truly gets changed on you throughout implementation.
Validate the company you're dealing with - pretty much any company that has done this has complaints about the practice that you can find on online. Companies without these sorts of reviews can generally be reliable.
Evil Evergreen Clauses
This is on top of the things that should be illegal but aren't. Some companies conceal sections in their contracts that state if you don't inform them by certified mail, between such and such a date, the contract spontaneously rolls over for a year.
This means if your contract is for $3,000 in monthly payment, the company will get $36,000 out of your pocket for doing totally nothing. And they are nothing other than being scam.
Leasing is Always Better than Renting
Not at all times, it varies on the rental you're eyeing, and mostly the terms of a rental purchase option (RPO) if available. In general, you're going to be better off leasing, or doing an equipment loan, but that's not always the case.