Category Archives: Financial Education

Watch Out For This Potential "Hidden Clause" of You're Next Lease Contract!

There are some pretty sketchy practices in the equipment finance industry. Since financial services are complex and have lots of funky terms that industry "outsiders" don't necessarily understand, most segments of the industry have a certain amount of bad seeds running around. However, bigger industries like mortgage and insurance are pretty tightly regulated, so when someone is caught breaking the rules, they tend to go to jail and get their name in the newspaper. Equipment leasing companies aren't regulated at all, so it's a lot easier to scam you when you are financing equipment than in a lot of other areas. For many finance products, it's pretty safe to just go with a bigger company - the guys who use Snoopy to sell you insurance aren't as likely to be crooks as the...

Why Leasing Rates Matter Less Than You Think

Unless rates are outrageous, it makes very little difference what actual rate you pay for your equipment. Take someone financing a trencher for $75,000.

If you bought new equipment from a dealer and were approved at a 5% rate over 5 years, your payment would be about $1,400 a month (depending on total of dealer fees).  If you didn't use dealer financing, but did used a third party leasing/finance company (with good credit) your payment might be $1,600 a month or so, a difference of $200 a month. Here's the deal - unless the amount of money you plan to make monthly from having that trencher is significantly more than $1,400 (or $1,600), you shouldn't be buying the trencher anyway. Most of the time, when we talk to people about buying a $75,000...