Suggestions on what is important when you enter a lease?

Q: Being in the maintenance field I'm sure that you would have an opinion on leasing and the benefits to a good lease to protect an organization on unanticipated repairs. We have little capital dollars, and are considering leasing as a way to get the...


Q: Being in the maintenance field I'm sure that you would have an opinion on leasing and the benefits to a good lease to protect an organization on unanticipated repairs. We have little capital dollars, and are considering leasing as a way to get the equipment we need without the large capital investments required. Any advice or suggestions on what is important when you enter a lease?

 

A: Leasing is the best way to go when it comes to obtaining equipment required.

Two suggestions on which I have listed below:

Straight lease... no maintenance

On the financial side you want to obtain the lowest monthly payments while keeping the residual as high as possible. Any additional equipment required should be installed at the time of lease and included in the lease. Better to pay for these monthly as well. Stick to leasing new equipment and a term that ends before things start to break as downtime is also very expensive.


Usually before the warranty expires. Turning back equipment with warranty remaining allows for the dealer to sell or release the equipment much easier. This program works well only if you have a well established efficient maintenance department.

Full maintenance lease

This program works if you do not have an efficient maintenance facility or do not want the task and expense of managing one. An inefficient maintenance facility can quickly add to your cost of equipment ownership. Replacement equipment is also made available while your equipment is down at most leasing facilities.

I hope this assists you with your decision.

We Recommend