Leasing for heavy equipment is one of the financing options that you may have. Equipment leasing has been misunderstood several times. This misconception can deprive many people of the benefits of leasing. Heavy construction equipment is already very expensive. The new startup company may not have enough capital to purchase even the used equipment for their fleet. In this case, they may lag. However, leasing can save them from failure and also provide them with good equipment.
Unfortunately, the myths and unreal facts about leasing have spread so far that make people uncertain about it. Under this pressure, they leave the opportunity to get fine equipment. Whereas, the equipment leasing option gives you the leverage of paying the amount in a monthly installment. This way it will not put a burden on your account as well.
In this article, we are unveiling a few myths that wander around about equipment leasing.
Myth #1: Leasing is more expensive
People think that when you will buy equipment like a used forklift for sale on a lease, then it will cost you higher than the credit. Whereas, the leasing cost depends on many factors such as the amount you contributed, buying price, number of instalments, etc. Among all these factors, you choose the right option for yourself. If you choose the right strategy, you will never get a high cost on it.
On the other hand, the leasing cost is always beneficial and easy on the pocket as compared to the one-time credit. The equipment leasing companies also offer discounts on eh particular models and equipment as they get in low prices from the manufacturers.
Myth #2: You will have nothing in the end
People think that at the end of the leasing episodes, you will have zero balance in the account. It is because you will have to invest all the money in paying the instalments. Well, it is a baseless point. How can it be possible, if you purchase the equipment for an agreed amount? It is just a way of distraction.
Actually, the amount that is supposed to pay in the credit is distributed in the instalment which ultimately lightens the burden on you. You keep working with the equipment and getting profits and paying the remaining episodes of the lease. It is as simple as it is.
Myth #3: All the leasing options are the same
It is another misconception that leasing options are the same. The leasing companies offer a lot of options and deals before you. All you need to do is to choose the right one that fits best with your company’s financial status. Further, you can do thorough research on the options before closing any deal.
Myth #4: Repairing bills are higher for leased equipment
Well, it is as pointless as it could be. How could it be possible that a repair cost can rise on the equipment that is leased? Repairing cost only depends on the severity of the damage. The more equipment is damaged the higher the repair cost.
All you need to do is to maintain the leased equipment like a used forklift for sale pretty well so that it remains productive for a longer time. The less you spend on maintenance, the higher you will have to pay for repairs.
Equipment leasing is one of the safest financing options. It gives leverage to startup construction companies to have good quality equipment without breaking their account. However, a lot of useless and baseless myths stroll around to distract the clients. In this article, we have tried to unveil some of the misunderstood facts so that you have a clear vision of leasing equipment.