3 Things To Ask For When Leasing Heavy Equipment

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If you are in the construction industry or operate an industrial business, you might have thought about leasing heavy equipment. Leasing heavy equipment is a good way to hold on to your capital while using the newest and best equipment, but some deals are certainly better than others. Knowing the following three tips can help you get the best deal possible, ensuring that you are as happy as possible with your decision.

1. Purchase Option at the End of the Leasing Period

Some companies offer a purchase option at the end of the leasing period, in which a big portion of your monthly payments will go toward ownership of the equipment. With a reasonable payment at the end of the leasing period, you can often own the equipment that you have been using. This is a good thing to ask about if you decide that you want to keep the equipment at the end and you don't want to start all over again with making payments.

2. Removal of Evergreen Clause

Some heavy equipment leasing companies add evergreen clauses to their contracts. Basically, these clauses stipulate  that you will be locked into your contract for another leasing period if you don't notify the company beforehand that you aren't interested in renewing. It can be easy to forget to contact the company, so it's best to avoid this kind of contract altogether. Instead, ask that your clause stipulates that you must come in and sign a new lease if you decide to keep the equipment a little longer.

3. Reduced Interest Rate

Don't accept the first rate that you are offered. In many cases, you can bargain and negotiate to a lower rate. Some leasing companies are willing to match the rates of other providers just to secure you as a customer, so you can try presenting rates that you might have been approved for elsewhere at your company of choice. By fighting for a lower interest rate now, you can save yourself a lot of money over the entire leasing period.

You should never sign a leasing contract for heavy equipment without asking questions and ensuring that your contract is as beneficial for you as possible. Luckily, if you make these three requests before signing the dotted line you can help ensure that you are happy with the agreement that you have made. Contact a local company, like Westar Financial Inc, to find out more about leasing options in your area.

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