|
Can
a commercial lease really help your bottom line?
Whatever your business vehicle needs, a properly
structured commercial lease has many valuable benefits
for companies of all sizes.
We understand how vital a business fleet can be to
the success of your business. Companies need the right
vehicles, but having the wrong financial package on
those vehicles can limit future growth and reduce rather
than enhance a company's bottom line. Before we suggest
a commercial lease for your business, we listen to your
goals and offer real solutions by customizing a
commercial program for your needs.
| • |
How can leasing benefit my business? |
| • |
Lower monthly vehicle payments |
| • |
Free up working capital by lowering
the amount you pay each month for your business
vehicles |
| • |
Commercial leases may qualify as
off-balance sheet financing. |
| • |
Possible additional tax benefits
(contact your tax counsel) |
| • |
Simplify accounting work by making
one consolidated payment each month versus
individual vehicle payments |
| • |
Establish a line-of-credit to speed
up the process of acquiring new vehicles |
| • |
Adjust your TRAC lease terms and
vehicle residuals to fit the projected cash flow
requirements of your business |
What is TRAC lease?
Terminal Rental Adjustment Clauses are referred to as
TRAC or open end leases. This type of lease allows us to
structure the contract to more accurately reflect the
lease end value of the vehicle as determined by your
intended use. Ultimately, businesses either receive a
rebate or must pay additional rent upon final sale of
the vehicle.
What type of vehicles can our business
lease?
Almost anything used for commercial purposes... from
passenger cars to vans to light or heavy duty trucks,
even class 8 tractor trailers, street sweepers, tow
trucks and other more uniquely functional forms of
vehicle types. In order to qualify as a commercial
lease, the vehicle must be used more than 50% of the
time for business. Vehicles with non-standard equipment
require pre-approval and certain vehicles like
ambulances, taxis, limos for hire and school vans
normally would not qualify.
Why not pay cash or use a bank
line-of-credit for our vehicle needs?
Leasing frees up your assets for other uses. Cash can
be used to invest in the future success of the business
and bank credit lines can remain open for funding
additional inventory, receivables and other expansion
needs or cover emergencies as they arise. The yield
returned from investing in the business will generally
be greater than the financing cost of a lease.
What terms are available?
A standard commercial lease is up to 60 months;
however, we recommend setting up your lease term to
match the normal trade cycle of the type of vehicle use.
Rates are very competitive. mileage is flexible, no down
payments are required (only the first payment and a
small documentation fee) and residuals can easily be
customized.
What happens at the end of the lease
term?
| • |
Purchase the vehicle for the
residual value plus any remaining unpaid charges
and fees. |
| • |
Trade-in the vehicle to cover the
remaining amount due. |
| • |
Return the vehicle to a designated
location for disposal and settlement. |
| • |
And finally, let us help you
determine your best option and assist you with
additional business vehicle needs for your growing
business. |
Commercial
leasing is a better choice for reducing transportation
costs.
Let our team of commercial specialists guide you through
the process from start to finish.
Our programs are quick, easy & flexible for any size
business needs.
| Cash
Flow Savings of a Sample Commercial Lease |
| $20,000
SEDAN |
| |
Traditional
Financing |
Commercial
Lease |
| Term |
36
Months |
36
Months
(with a 30% residual of $6,000) |
| Down
Payment |
$2,000 |
None |
| Amount
Financed |
$18,000 |
$20,000 |
| Monthly
Payment |
$551.77* |
$467.75 |
| Monthly
Cash Flow Savings |
--- |
$84.02 |
| 36
Months Cash Flow Savings |
--- |
$5,024.72** |
*
interest rate used in calculation was 6.9% APR.
Rates are subject to change. After 36 mos., the
customer would own the vehicle with an estimated
value of $6,000. Because purchase and lease taxes
vary by State, no taxes are used in these
examples.
** Includes $2,000 down payment on finance
contract. |
| $35,000
TRUCK |
| Term |
60
Months |
60
Months
(with a 20% residual of $7,000) |
| Down
Payment |
$3,500 |
None |
| Amount
Financed |
$31,500 |
$35,000 |
| Monthly
Payment |
$633.02* |
$597.17 |
| Monthly
Cash Flow Savings |
--- |
$35.85 |
| 36
Months Cash Flow Savings |
--- |
$5,651.00** |
*
Interest rate used in calculation was 7.9% APR.
Rates are subject to change. After 60 mos., the
customer would own the vehicle with an estimated
value of $7,000. Because purchase and lease taxes
vary by State, no taxes are used in these
examples.
** Includes $3,500 down payment on finance
contract. |
Call us at: 1-866-309-7700
|
