Smart Equipment Leasing Strategies Its in the Fine Print By:Mary Redmond

The U.S. Department of Commerce continues to cite what business owners and financial managers already know: rapidly changing technology and cost-containment issues have spurred phenomenal growth in the equipment leasing market. Despite current economic difficulties, Global Insight, Inc., predicts that over $1.15 trillion in equipment will be acquired during 2009. More than $672 billion will be financed using loans, leases and other financial instruments.

Eighty percent of U.S. companies lease equipment to add or upgrade and stay in step with the changing landscape of business, especially in the area of technology. Fifty-nine percent of all businesses that finance equipment report they will lease computer equipment and 37 percent say they will lease software. Digital printing equipment is the most common equipment leased in every printing company.

However, not all equipment leases are the same. How can you protect your company? Whether your company is small, midsize or large, avoid technical obsolescence without overspending by learning to bring financial and technical matters into line with the business issues. By trimming hidden fees, it is possible to cut five to 15 percent from the cost of leasing equipment, whether it is a laptop or desktop computer, molding equipment, printing press, fork lift or digital copier.

The first step to paring costs is awareness. You hold the power of negotiating financial terms in any lease agreement; in turn, you hold the power to save hundreds, thousands--even millions--over the life of the lease.

Here are eight smart leasing strategies to save time and money.

1. Find a natural fit. There are many types of leases and leasing companies. All offer variables that affect the bottom line, and all contain benefits as well as potential pitfalls. Shop for the company that helps you get what you need when you need it--at the right price. In theory, the leasing company wants your business and will not jeopardize the relationship because of a few fine points related to financing. The manufacturer's leasing source may not offer the best priced financing package it often is an easy option to choose.

2. Reduce up-front costs and monthly payments. Focus on the best price for the equipment, not the monthly payment. Always negotiate with the equipment sales person as if you are a cash buyer. In that way you are assured that you remain focused on the asset price. The financing negotiation will follow later. The best monthly payments and terms are driven by the purchase price you negotiate.

3. Adjust the payment schedule. After the cost of equipment is negotiated, payment terms are also key to cost savings. Request the payment plan that fits your cash flow projections, whether it is monthly, quarterly or annual. If equipment operators experience a learning curve, structured lease payments may be helpful. Consider lower payments during the first three to six months.

4. Understand buy-outs. You may believe you can buy equipment at the end of the lease for "about 10 percent" while the lease states "in-place and in-use fair market value." The difference can be significant and costly.

5. Avoid hidden penalties. Penalties as high as 60 percent that lurk in return provisions, upgrades, deadlines, cancellations and automatic extensions are negotiable and avoidable.

6. Beware of the "Perpetual Lease." Chances are, you will not be notified that the original lease term has ended. The lease may automatically extend or renew, trapping you in added payments or a costly "Evergreen Lease."

7. Ask an expert. Consult a lease review expert to bring financial and technical matters into line with legal issues--before you sign.

8. Never too late to negotiate. Even if you are in a lease, there are still negotiable items such as late payments, end of lease purchase prices, relocation fees and return fees.

How Long Should You Lease a Car For By:Charlotte Cavanagh

Are you thinking about a car lease, but you're not sure how long you should lease it for? There are many car leasing offers out there - most of which are advertised with 2, 3, 4 or even 5 year leases. But why do they vary and how does the length of a car lease affect you?

4 or 5 year car leases

In most cases we wouldn't recommend leasing a car for this long. Some companies advertise 4 or 5 year car leasing deals because they look cheaper. The longer you lease a car, the cheaper the monthly rental will be - this is because you are financing the car over a longer period.

If you want to bring the cost of your lease down, leasing over 4 or 5 years will do this. But you should be aware of the following:

• Manufacturer warranty's typically only last 3 years - so your lease vehicle will not always be under warranty
• You'll have to pay for an MOT after 3 years
• You will be more susceptible to wear and tear charges - because you'll be driving the vehicle for longer

3 year car leases

3 year contracts are the most common. This is because you get to spread the cost of the lease over a reasonable period - and because the car will still be covered by the warranty (as long as you are within the mileage limit of the warranty).

2 year car leases

In the last couple of years, 2 year contracts have been popular. People like them because they are only committing to a contract for 2 years.

In the past there have been many low cost 2 year leases. But due to the current economic climate, they are now quite expensive. This is because leasing companies don't want cars being returned to them in 2 years. The market is very volatile at the moment and the risk of losing out on depreciation is quite high.

Getting the Best Deal on Your Lease By:Ryan J Taylor

When shopping for your new auto lease, the key to getting the best possible deal is not necessarily how much you make or how much you owe. The secret is having a credit score that is at least on par with the national average.

With a good credit score that exceeds the expectations of the leasor, you can not only get the lowest possible rates on your new car lease, but you may even be able to get upgraded to a nicer vehicle or more features. In many cases you don't just need to have a high credit score, but you only need to know what it is. As an informed consumer who knows exactly where you stand, you have the upper hand when it comes to negotiating the terms of your new lease. This is information that most consumers do not come prepared with, and dealers take advantage of that.

In addition to getting a great deal on your new auto lease, this information can help you reduce your auto insurance. Your premium and rates are often set by your credit score, but don't expect that to change as your score improves over time. By knowing your score, you could may be able to cut your insurance rate with a simple phone call.

Knowing your credit score is a simple, yet critical piece to getting the auto lease that you deserve. Coincidentally, it is one of those things most people don't think about as they get emotionally involved and excited about a new car. Don't get ripped off on your next lease.

Equipment Leasing Coming of Age With New Immerging Technologies By:Al Bassett

The business related to leasing equipment has grown?in massive scale in the past few decades. There are enumerable developmental works going on all over the world and the equipment is being supplied by the financial companies related to business leasing?. Traditionally, the business field of leasing equipment was only related to a few industries, like construction, mining and the hotel and hospitality industries.

With?recent developments in the other sectors of the economy, the leasing equipment industry is also changing. There are many companies in the world which are trying to create a new niche for themselves. These companies are concentrating more on new concepts like wind turbine financing and nanotechnology financing. These companies are catering to the demands of those companies which are setting up wind generating systems in various countries for cleaner and greener sources of power. All over the world, there is an urge to shift to clean energy. Wind is one such clean source. Energy from wind can be produced with the help of turbines. Many companies are providing wind turbine financing and leasing, so that the wind farms can be set up easily.

The development of nanotechnology is perhaps one of the major events in the field of science, in the recent past. Nanotechnology is being used in many fields, starting from medicine to automobiles, from robotics to security and surveillance. In this sector also, many leasing and financing companies have come forward. These companies are proving nanotechnology financing and leasing to their clients, so that the work of research and development is accelerated and the end cost also remains minimum. The companies providing the options of wind turbine financing and nanotechnology financing are only a few. But as the demand goes in the global market, it is expected that many new players will be joining this field soon. This is a $ billion industry and so, it is expected that the number of companies will be on a rise, when the market begins to expand more.

Presently, the demand for the wind turbines and equipment related to clean energy, such as solar panels, tidal generators, etc has increased a lot. But very soon, demands for equipment related to nanotechnology will also be on the?increase with the rising of the scope of this new technology. Therefore, investing in a business which deals with leasing out or financing equipment such as wind turbine, solar panels, or nanotechnology is a brilliant idea, as these industries are here to stay.?

With?Equipment Leasing heading the pack of cutting edge business finance options and easy to qualify for one page online applications, keep your eye on this industry to grow in leaps and bounds.

Do You Know Your Credit Score For Your Lease By:Ryan J Taylor

When applying for a lease, your credit score is the most important piece of personal information that will either get you the lease you need or not. It doesn't matter if you are applying for a new auto lease or you want to rent an apartment, the credit rating you carry gives insight to not only your financial situation, but how likely you are to pay your bills on time. Nobody, particularly in this economic environment, is willing to take any risks.

By knowing your credit score you are in a position of power when it comes to agreeing upon a lease. It is the single thing thing that is likely to help you not only get approved, but get the best possible deal. Unfortunately, most companies bet on the fact that people in general have no idea what their credit score is. Knowing that, they rip off many consumers by giving incredibly high rates and payments due on their lease simply because they can get away with it most of the time.

Before you apply for that least, be one step ahead and know your credit score. If you are a bit disappointed in your score and find that it falls below the national average, there's no reason to worry. By reviewing this information firsthand, you can quickly identify areas that you can fix. For instance, a shockingly large number of credit reports contain information that doesn't belong there. By identifying those items on your credit report and having them removed, you can instantly increase your score and get approved for the lease you need.

Do You Know the Facts and Myths About Leasing By:Gary Mcclure

There is so much confusion among consumers, dealers, and even some so called experts when it comes to leasing a car. I'll attempt to clear up some of that confusion here. You'll find many more answers and help with these and any other questions you might have about buying, leasing and financing a vehicle in my book, "The Insider's Secrets".

I drive too many miles to lease:

This may or may not be an accurate statement. Whether you purchase or lease, every mile you put on your vehicle reduces its value. When you purchase a car you end up with a car that has depreciated a great deal because of the excess miles. Now you have negative equity that you might have to carry to your new car loan, if you're trading before it's paid for. When you lease, you are able to build the excess mileage in upfront. This will make your payment higher but, generally it will cost less than paying for that depreciation at the end. Keep in mind that if you happen to trade before you're lease term is up these upfront mileage penalties are not refundable, and mileage penalties can be avoided entirely by trading, selling or buying the leased vehicle as the penalties only apply to vehicles that are turned in at lease end. Most lenders will allow you to build into the lease up to 100,000 miles over the lease term.

I won't own it at the end:

This is a true statement. But how often, as an adult, have you actually held the title to your car in your hands. Most people never even see the title to their vehicles because they trade well before their vehicle loans are paid off. The bigger question is, why would you want to own it? Even if you didn't drive your car it would be worth less tomorrow than it is today. A new or used car is a depreciating asset and not an investment. I would sooner pay for the use of the car (the depreciation) and return it to the lender at the end. They take the loss if there's negative equity, not you.

It will cost me more to lease:

This is an unknown. You need to look at the total cost of ownership. In my experience it is generally less expensive to lease a car than to purchase. There are a number of reasons for this, the biggest reason is that you don't have to deal with the potential for negative equity, the leasing company does. Some other obvious reasons are; lower monthly payments and lower down payment requirements. Our book, "The Insider's Secrets" can give you some specific comparisons on leasing versus buying. It is important to remember that, in most cases, leasing allows you to drive a vehicle you might not have been able to afford if you had chosen to purchase it instead.

I know someone who got ripped off in a lease:

This is a very subjective statement. There are too many variables and unknowns to put this into perspective. Generally this statement comes from someone using it to blame someone or something else for their mistakes. You would really need to understand the whole story from both the borrowers and the lenders side. This statement usually comes from someone who drove their vehicle without regard to the miles they contracted for or they abused the vehicle and were charged for damages. I can almost guarantee that you know someone who got ripped off in a purchase as well.

I can't trade early if I want to:

This is not a true statement. I am not aware of any lease that you couldn't trade out of any time you wanted. Remember though that by trading early you may have to pay unpaid sales tax and you will owe the full balance of the lease. Generally you will have much more negative equity if you trade your leased car early because you most likely have been making a lower payment all along. One of the advantages of a lease is that you typically have a lower payment than if you had bought your car. The best thing you can do to avoid having so much negative equity is to make sure you aren't paying too much for the vehicle in the first place.

I will owe too much at the end if I want to keep it.

This is true in most cases. The best thing about a lease is the fact that while a purchase gives you obligations, a lease gives you options. In a lease you have the choice to trade it, sell it, keep it or turn it in to the lease company. If the vehicle isn't worth what it would take to own it, turn it in and walk away. If you do have equity, you can capture it buy trading it, selling it or buying it. In a purchase you have one choice only, regardless of your equity position. And again, why would you want to keep it? One of the biggest reasons to lease in the first place is so you can drive a newer car more often and not need to worry about what it's worth and what you owe. The exception to this would be if you really are the person that will drive the car forever and ever.

I can't accessorize my car if I lease:

This is not true. Most lenders will allow you to accessorize your leased car as long as you leave the accessories on when you turn the car in. Obviously you could remove any accessories that do not reduce the value of the vehicle or leave damage when removed. The only real exceptions to this are; repainting, lowering, lifting or making any other significant changes to the integrity of the frame. If you add custom wheels or stereo systems, etc., be sure to keep the originals so that they can be replaced when you turn the vehicle in. Again, you only have to worry about any of this if you turn the vehicle in at lease end. In any other scenario, the accessories or changes made won't matter to anybody but you.

I have bad credit; no bank will let me lease a car:

This depends on each individual and each different lender. Some lenders specialize in leasing to consumers with less than perfect credit. Leases are available on late model used cars as well as new. Leasing a car can be a great way to reestablish your credit. If you have less than perfect credit, always ask about the programs that the lender offers. It may be to your benefit to consider leasing a car.

Summary:

There is not nearly enough room here to go into all the details of leasing a car. All I can say is keep an open mind, leasing is not as bad deal as many people would want you to believe. In the end it's a matter of personal choice.

Car Leasing The New Corporation Tax By:Charlotte Cavanagh

The government has introduced new tax rules to encourage businesses to choose vehicles with lower CO2 emissions.

From 1st April 2009, 160g/km became a key CO2 emissions figure for new cars, replacing the previous ?12,000 'Expensive Car' threshold.

What impact does this have on the cost of leasing a business car?

For new cars registered from 1 April 2009, companies will be able to offset 100% of their leasing payments against their tax bill if the vehicle is below the 160g/km threshold, irrespective of its capital cost. For leased cars emitting more than this threshold, they will only be able to claim 85% of the financial element of the rental.

The new rules will make it more tax efficient than before to lease a new company car that emits 160g/km of CO2 or less.

Jane Ramsey of Vesource Ltd says "The tax changes will also relieve a major administrative burden from accounting departments, who now only have to worry about whether a vehicle has emissions above or below the threshold to work out their writing down allowance or lease rental restriction."

What should you do?

Whether you run one vehicle or a thousand, you should review your business car strategy to ensure that you take full advantage of the new tax regime.

Firstly, you need to review your acquisition method. Currently there is a 'tipping point' of around 20,000 Franks, with most tax advisers recommending companies to buy cars costing more than this figure. Under the new system, leasing is expected to be the most tax efficient acquisition method in nearly all cases.

Secondly, companies need to review their car policy, examining the whole-life cost of vehicles. For example, two 30,000 Franks cars may cost the same to lease or purchase, but, depending on emissions, could have a dramatically different after-tax cost.

Car Leasing Be Wary of Unlimited Mileage Deals By:Charlotte Cavanagh

You may have come across one of the many van or car leasing deals offering 'unlimited mileage'. Sounds great, but how do they work and are they as good as they sound?

Vehicle leasing expert Jane Ramsey explains "These deals do sound good on the face of it, but as with most things in life, if it sounds too good to be true, it usually is and there is a catch!"

One of the finance packages used when leasing a vehicle is called Finance Lease. This is where a business leases a vehicle over a set period and at the end of the lease there is a balloon payment, that the customer is responsible for.

'Unlimited Mileage' deals are essentially Finance Lease and unlike other types of finance, there is no direct excess mileage charge. This does not mean that the mileage is 'unlimited' though as there is a residual balloon figure which is based on a set mileage.

For example, if the Finance Lease is set up on the standard 10,000 miles per year when you actually do 30,000 miles per year, you can guess that a vehicle with 90,000 miles on the clock will be worth substantially less than one with just 30,000 on the clock.

Herein lies the problem. If you have been sold an 'unlimited mileage' lease and you do more than the mileage stated on the contract, you can pretty much guarantee that the vehicle will not be worth the balloon figure at the end of the lease.

This means that you have to pay the difference, so in effect you are paying for the additional mileage anyway.

Another issue

The second issue, which is not always pointed out, is that the customer is also responsible for selling the vehicle at the end of the lease.

Unlike Contract Hire where you just hand the vehicle back, you have to find a buyer for the vehicle and pay the finance company the balloon figure.

So where does Finance Lease work?

We would recommend Finance Lease to builders or trades people where vans may have a hard life and it would not be worthwhile paying the damage recharge if it were on Contract Hire.

Car Leasing 5 Biggest Mistakes People Make By:Charlotte Cavanagh

Leasing is a great option if you're looking for a new car. However before you sign up to a deal, you should read the following.

These common tricks are used by some leasing companies to make deals appear more attractive:

1) Be careful of enhanced deposits

The most common trick to make monthly payments appear lower is to enhance the deposit (initial payment). The deposit should be roughly 3 x the monthly payment.

2) Beware of the length of the lease

Most car leases last for either 24 or 36 months - this is ideal (for vans, 48 months is also common). Another very popular trick to make monthly payments appear lower is to increase the length of a lease to 48 or 60 months.

This will of course bring down your monthly payments as you are financing the car for a longer period.

Warning: Your warranty is unlikely to be valid after 36 months. Therefore we advise you not to lease a car for longer than 36 months - as you will be responsible if something goes wrong.

In addition, the longer you have the car, the more susceptible you are to wear and tear charges.

3) Be wary of 'unlimited mileage' deals

'Unlimited Mileage' deals are essentially Finance Lease and unlike other types of finance, there is no direct excess mileage charge. This does not mean that the mileage is 'unlimited' though as there is a residual balloon figure (owed at the end of the contract) which is based on a set mileage.

If you have been sold an 'unlimited mileage' lease and you do more than the mileage stated on the contract, you can pretty much guarantee that the vehicle will not be worth the balloon figure at the end of the lease, so you'll end up having to pay for the shortfall.

Finance Lease is also risky in today's economy - as it's hard to predict what a vehicle will be worth at the end of the contract.

4) Compare quotes on a like for like basis

Some leasing companies aren't always clear what they are quoting for. This coupled with the fact that manufacturers make so many different models can cause confusion.

Ensure you get a written quote with the full description of the vehicle. This will help you compare quotes on a like for like basis - And ensure you go ahead with the right deal.

Auto Leasing What If You Have Bad Credit By:Ernesto Maitim

Perhaps you have had an experienced being denied a vehicle lease. You certainly know the reason, you own a less desirable credit score. Definitely it is important to have a good credit history, especially if you are one who needs to get a loan or lease. It is advisable to repair a bad credit in order to have a better chance with your auto lease application.

What is credit score anyway? It is value of the worthiness of your credit. This value is used by the leasing companies to know if an applicant is eligible for an auto lease. Your credit rating is actually based on past and present credit, and its numerical value can be from 350, with 850 as the highest. A score that is higher than 720 can be called a prime score and will help you obtain the most competitive rates. On the other hand, if the score that you currently have is under 640, then this is called sub prime score, which means you are considered by leasing agents as an applicant with bad credit. If you have poor credit rating, you definitely have a hard time getting an auto lease.

Request for you credit score from FICO or the Fair Isaac Corporation. They actually provide details of your credit rating which are held by the top credit agencies in the United States. It is advisable to make comparisons of the three ratings and check if one or more of the agencies have wrong credit data on your report. If there indeed is an error, you must request for a correction from the reporting agency

However, if no errors can be found in the reports, your best option is to make big steps in building up your credit score. Try to make it go up the level of 640. You can do this by becoming a good payer of bills. Pay them on time and regularly. You must not open new credit accounts as this will only increase your payment responsibilities and add up to your burden. In the end, it might just worsen your credit rating.