Leasing a vehicle allows you to drive the car for a specified term without purchasing it and provides several additional advantages such as requiring little or no down payment, lower monthly payments compared to purchasing a new automobile, easier disposal of the vehicle, and flexible options when your lease comes to an end. However, auto leasing can be disappointing since it restricts your car usage, needs suitable and scheduled maintenance of the car, demands higher charges should you decide to terminate the lease contract early, and offers you less freedom in customizing your car.
Deciding whether to lease or purchase a new car involves examining the pros and cons of auto leasing. Considers these vital benefits and pitfalls of leasing your car when selecting the best option for you:
There is little to no money required for the down payment on a lease
You don't have to put money down when you lease a car. Even if the dealer wants a down payment, it won't be very much. A lease auto service would benefit you the most if you need a car to drive but do not have the money to initially purchase one or if you cannot secure a loan to pay for the car when you need it most.
When you lease rather than buy a car, your monthly payments are smaller
Auto leasing also features lower monthly payments than purchasing a new car, allowing you to drive a more expensive car with similar monthly payments than if you purchased a less-expensive car. This is wonderful for people who desire to drive elaborate vehicles sometimes.
It helps with getting rid of it even without a car
Purchasing a new car soon can only be done if you can find a buyer for the car you have owned for a few years. A definite advantage to leasing a car, is that you do not have to fret over what to do with it when you want a new car. The only thing you have to do is give back the car when your lease contract runs out. When that happens, you can lease another car of your choice or buy a new one and leave the burden of disposing the old car to your car dealer.
At the end of the term, leasing offers flexible options
Auto leasing also offers flexible options at the end of the lease contract. You have the choice to buy the car, return it or renew the lease. This is a good choice for you if you have not really decided how to get hold of the car, but you badly need to have one.
It limits your car usage
As attractive as it may seem, auto leasing also has its drawbacks. To start with, it minimizes utilization of your car. Most auto lease contracts restrict your car usage for up to 12,000 to 15,000 miles per year. Should you go beyond the stipulated mileage, you would have to pay for the excess mileage penalty depending on your contract. Before you sign a lease contract think carefully about the milage that is allowed in your contract and the miles tha tyou travel, because you do not want to have to pay penalties when your lease is up.
You need to ensure that the car is taken care of
One frustration you might experience with an auto lease is the requirement that the car be kept in top shape at all times. In that case count on paying more when you bring back the leased car You need to make sure you follow the suggested schedule for oil changes and routine check-ups, as well as make sure you keep the car safe when parking to avoid possible damages.
If you decide to end the lease contract early, auto leasing requires higher charges
A termination fee will be imposed should you opt to end your automobile lease contract prior to the end of the term. If you want to lease a car, make sure you will be able to finish your contract so you can avoid being charged later.
When you lease your ability to customize your car is limited
Last of all, when you lease an automobile you will not be able to customize the vehicle to the extend that you can do so when you buy a car. Just because you need to return the car when the term ends, you cannot make permanent changes to it or you will be charged for that. When you purchase a car, be certain to thoroughly discuss and establish any vehicle enhancements so you do not see unexpected charges later.
Considering these positives and negatives will help you figure if an auto lease or buying a vehicle is best for you. Think about what is important to you and include any conditions you may have - this will help you come to the right decision for you.
Showing posts with label Leasing. Show all posts
Showing posts with label Leasing. Show all posts
Thursday, October 18, 2012
Monday, August 6, 2012
Locating Financing And Leasing For Work Trucks Can Be A Acquisition And Leasing Opportunity.
Locating banking and leasing for Work Trucks, such as tractor trailers, dump trucks, cement trucks, concrete trucks, auto carriers, box trucks, concrete and construction trucks, day cabs, heavy duty trucks, class 8 trucks etc can be a financing and leasing opportunity.
Today's financial system is all over the place and normal work truck financing and banking has dried up at many lending institutions and/or banking banks. Work semi truck owners can seek and obtain special financing and monetary in the secondary markets where there are repos and off lease trucks to be secured for acquirement.
These asset deals and related lending are spread out from California to the East Coast and enables start up and weathered owner operators an rare chance to acquire work trucks, trailers and related things for little or possible no resources down
Selected dealerships are tied to regional institutions for built in leasing on these trucks. The clearance of these work trucks and interconnected trailers are paramount for these dealerships and banks to continue operations.
Some institutions offering repossessions and off work trucks in the repossessed market offer these trucks with a minimum credit score of 525. This gives the startup and/or weathered business an occasion to begin and/or expand their fleet with bad credit. This opportunity would have never existed in the previous. Other lenders offer no credit check but are reference and income driven to make sure they have qualified a high-quality candidate to obtain over one of their over the work trucks.
The work truck lending and financial doesn't stop here, others institutions with good quality credit and moment in business offer no down costs and up to 60 months to repay. This obviously gives the over the work truck owner operator an rare chance to purchase work truck financing. Additional work semi truckbanking. leasing programs commence at 575 and the down payments can be anywhere from 6-10% down based upon the applicant and the specific work truck. Additionally, if you are a currency buyer, there is substantial chance to buy a work semi truck at a large discount
In today's financial system, we have even found reference driven financial institutions, credit reports aren't considered as the vital criteria for lending and financial. Past bankruptcies can be a roadblock for numerous furnish deals, however these lenders will explore them on a deal by deal basis and in most instances will not be a arrangement busterAll trucks are reconditioned and subject to your inspection previous to release.
The residual buyout clauses in these institutions can range from a .00 buyout to
15% residual buyout( Trac lease) So it is key to comprehend your buyout clauses and the effect on the passing of title.
The types of work trucks we are talking for leasing and financing are built by:
Peterbilt, Kenworth, Freightliner, Mack, International, Volvo. Sterling, Ford, GMC etc
Don't forget the financing deals on reefer trailers, drop deck trailers, and gooseneck trailersThis could contain manufacturers such as Wabash, Doonan, Utility, Wilson, Fontaine, Innovative, Notable Dane and Vanguard
In conclusion/close, this is a buyers market for owner operator trucks, and trailers, Check out all the opportunities in the market and make sure that you have a stable income base to assume anything debt that you may perhaps occur.
Happy hunting for your acquisition and its related work truck financing
Finding Lending and Banking for Work Trucks can be a Acquisition and Leasing, Opportunity.
Today's financial system is all over the place and normal work truck financing and banking has dried up at many lending institutions and/or banking banks. Work semi truck owners can seek and obtain special financing and monetary in the secondary markets where there are repos and off lease trucks to be secured for acquirement.
These asset deals and related lending are spread out from California to the East Coast and enables start up and weathered owner operators an rare chance to acquire work trucks, trailers and related things for little or possible no resources down
Selected dealerships are tied to regional institutions for built in leasing on these trucks. The clearance of these work trucks and interconnected trailers are paramount for these dealerships and banks to continue operations.
Some institutions offering repossessions and off work trucks in the repossessed market offer these trucks with a minimum credit score of 525. This gives the startup and/or weathered business an occasion to begin and/or expand their fleet with bad credit. This opportunity would have never existed in the previous. Other lenders offer no credit check but are reference and income driven to make sure they have qualified a high-quality candidate to obtain over one of their over the work trucks.
The work truck lending and financial doesn't stop here, others institutions with good quality credit and moment in business offer no down costs and up to 60 months to repay. This obviously gives the over the work truck owner operator an rare chance to purchase work truck financing. Additional work semi truckbanking. leasing programs commence at 575 and the down payments can be anywhere from 6-10% down based upon the applicant and the specific work truck. Additionally, if you are a currency buyer, there is substantial chance to buy a work semi truck at a large discount
In today's financial system, we have even found reference driven financial institutions, credit reports aren't considered as the vital criteria for lending and financial. Past bankruptcies can be a roadblock for numerous furnish deals, however these lenders will explore them on a deal by deal basis and in most instances will not be a arrangement busterAll trucks are reconditioned and subject to your inspection previous to release.
The residual buyout clauses in these institutions can range from a .00 buyout to
15% residual buyout( Trac lease) So it is key to comprehend your buyout clauses and the effect on the passing of title.
The types of work trucks we are talking for leasing and financing are built by:
Peterbilt, Kenworth, Freightliner, Mack, International, Volvo. Sterling, Ford, GMC etc
Don't forget the financing deals on reefer trailers, drop deck trailers, and gooseneck trailersThis could contain manufacturers such as Wabash, Doonan, Utility, Wilson, Fontaine, Innovative, Notable Dane and Vanguard
In conclusion/close, this is a buyers market for owner operator trucks, and trailers, Check out all the opportunities in the market and make sure that you have a stable income base to assume anything debt that you may perhaps occur.
Happy hunting for your acquisition and its related work truck financing
Finding Lending and Banking for Work Trucks can be a Acquisition and Leasing, Opportunity.
Thursday, July 12, 2012
Essential Information For Equipment Leasing And Finance
Are you planning for to get equipment finance for your business?This article presents essential information for businesses that plan to apply for equipment lease financing. Read carefully, follow the details given below and avoid unnecessary complications.
Equipment Leasing is opposed to straight financing. It is an alternative financing method to acquire needed business equipment. In real essence, you only pay for the depreciation of the equipment over a given time frame. At the end of the lease you either purchase the depreciated asset or trade it for a new lease and new equipment. It allows a company to hold on to valuable cash capital and use the profits the equipment generates to pay for itself over time with added tax advantages.
What is a typical business mind-set? It will always say that equipment leasing is for companies that are short of capital. However, research would indicate that even the largest of companies use leasing finance to guarantee fixed costs and access essential equipment. Along with this you also get either corporate or personal guarantees. A corporate guarantee means that if the lease goes into default, the leasing company can take possession of the equipment and liquidate it to settle the lease balance. A personal guarantee is identical to a corporate guarantee except a person's property may be used to satisfy the lease balance.
With regard to leasing payments and purchase, the monthly payments are lower. At the end of the lease term, a single payment is due that equals several months of combined payments. On the other hand, a lease purchase is financing the equipment by any other name. It allows the business to deduct the lease payments from taxes as a business expense. Also equipment depreciation can be used as a tax deduction.
In many cases it may possible to lease any type of equipment without the need for a deposit or extra security. Few of the benefits that you will be enjoying with equipment finance is that no funding is required, payment terms will be flexible and transaction speed is great,most popular being is cost.
Equipment Leasing is opposed to straight financing. It is an alternative financing method to acquire needed business equipment. In real essence, you only pay for the depreciation of the equipment over a given time frame. At the end of the lease you either purchase the depreciated asset or trade it for a new lease and new equipment. It allows a company to hold on to valuable cash capital and use the profits the equipment generates to pay for itself over time with added tax advantages.
What is a typical business mind-set? It will always say that equipment leasing is for companies that are short of capital. However, research would indicate that even the largest of companies use leasing finance to guarantee fixed costs and access essential equipment. Along with this you also get either corporate or personal guarantees. A corporate guarantee means that if the lease goes into default, the leasing company can take possession of the equipment and liquidate it to settle the lease balance. A personal guarantee is identical to a corporate guarantee except a person's property may be used to satisfy the lease balance.
With regard to leasing payments and purchase, the monthly payments are lower. At the end of the lease term, a single payment is due that equals several months of combined payments. On the other hand, a lease purchase is financing the equipment by any other name. It allows the business to deduct the lease payments from taxes as a business expense. Also equipment depreciation can be used as a tax deduction.
In many cases it may possible to lease any type of equipment without the need for a deposit or extra security. Few of the benefits that you will be enjoying with equipment finance is that no funding is required, payment terms will be flexible and transaction speed is great,most popular being is cost.
Tuesday, May 8, 2012
Leasing Retail Space - Negotiating The Right Deal
Letter of Intent (LOI)
Retail space negotiations are complicated and time-consuming. Once you have located the retail space which is ideal for your business, the next step is to negotiate an agreement which protects you and is acceptable to the landlord. Industry practice for retail space is to negotiate a letter of intent before negotiating the lease.
Use an Attorney!
Engage an attorney to assist in the letter of intent negotiation. It probably seems that the letter of intent is informal and can easily be negotiated without an attorney. However, there are issues you should address in the letter of intent which may not be obvious if you have not previously negotiated letters of intent for retail.
Wow! This is Complicated
Common factors for a retail space letter of intent include: defining the parties (leasor and leasee aka landlord and tenant), defining the space, defining the rent including any percentage rent, defining the basis for calculating sales or net income if they are involved in calculating rent, the initial term, any renewal options, rent for renewal options period, the day at which lease payments commence, the date of occupancy, the condition of the space when the landlord provides it to the tenant, tenant improvement allowances provided by the landlord, who performs the tenant improvements, is the tenant required to use union labor for tenant improvements, is the tenant required to use a general contractor for tenant improvements (TI), who pays for the cost of the ADA compliance, who maintains what (i.e roof, HVAC, electrical, plumbing, etc), who pays which expenses, calculating the payment for CAM (common area maintenance), free rent, and identification of the broker and payment of the brokerage fee if relevant.
You Mean There is More!
Other issues which you may want to address in the letter of intent include expense escalations, co-tenancy issues, eminent domain, foreclosure, maintenance standards, definition of the amount of leaseable space, personal guarantees, purchase option, subleasing, required hours of operation, dedicated parking, who is responsible for obtaining variances related to signage and usage of the retail space, expansion options, first right of refusal, can the tenant keep the TI allowance not needed for construction, can the landlord relocate the tenant if the space is needed to accommodate another tenant, late payment fees, the mechanics of providing notice of default and any options for the tenant to cure the default, mechanics of dispute resolution between the landlord and tenant, and a right to terminate if your sales do not stabilize at a minimum level.
Complete LOI First
Complete and obtain an executed copy of the letter of intent before beginning on the lease agreement. The primary objective of the letter of intent is to negotiate and agree upon the business issues. The lease documents these agreements. Discuss fees to negotiate the lease with your attorney. Agree upon an hourly rate and estimate of the total fees. Agree the attorney will call if it appears the cost is going to exceed the estimate.
The following sections of the leasing retail space article focuses upon issues which merit commentary.
Percentage Rent
Percentage rent -- make sure the agreement regarding percentage rent is clear. If percentage rent is based on sales, define sales. For example, is sales-tax remitted to the city and state included in sales? It is even more difficult to define net profits, which is why most percentage rent leases are based upon sales instead of profits. Attempt to look at the definition of net profits from a detached perspective. If you gave the definition to a six grader, could they understand it?
Renewal Options
Renewal options -- tenants love them and landlords prefer to avoid them. In general, a larger number of shorter renewal options are better for the tenant. In addition, shorter notice periods to announce the tenants intend to renew are desirable for the tenant. Landlords prefer as much notice as possible regarding whether or not the tenet plans to renew.
Renewal Option Rental Rates
Renewal option rental rates -- tenants typically want fixed rental rates for renewal periods. Landlords typically want the rental rate based upon market rent. Agreeing upon market rents can be difficult and expensive. Reasonable people can disagree regarding the level for market rent for a retail space. For example, should the premium for an end-cap space be 10% or 100%? Retail space is not fungible. It recently signed lease for retail space within the same center provides insight into market rent. However, in most cases it will not clearly defined market rent.
The Market Research and Consulting division of O'Connor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance. In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.
Retail space negotiations are complicated and time-consuming. Once you have located the retail space which is ideal for your business, the next step is to negotiate an agreement which protects you and is acceptable to the landlord. Industry practice for retail space is to negotiate a letter of intent before negotiating the lease.
Use an Attorney!
Engage an attorney to assist in the letter of intent negotiation. It probably seems that the letter of intent is informal and can easily be negotiated without an attorney. However, there are issues you should address in the letter of intent which may not be obvious if you have not previously negotiated letters of intent for retail.
Wow! This is Complicated
Common factors for a retail space letter of intent include: defining the parties (leasor and leasee aka landlord and tenant), defining the space, defining the rent including any percentage rent, defining the basis for calculating sales or net income if they are involved in calculating rent, the initial term, any renewal options, rent for renewal options period, the day at which lease payments commence, the date of occupancy, the condition of the space when the landlord provides it to the tenant, tenant improvement allowances provided by the landlord, who performs the tenant improvements, is the tenant required to use union labor for tenant improvements, is the tenant required to use a general contractor for tenant improvements (TI), who pays for the cost of the ADA compliance, who maintains what (i.e roof, HVAC, electrical, plumbing, etc), who pays which expenses, calculating the payment for CAM (common area maintenance), free rent, and identification of the broker and payment of the brokerage fee if relevant.
You Mean There is More!
Other issues which you may want to address in the letter of intent include expense escalations, co-tenancy issues, eminent domain, foreclosure, maintenance standards, definition of the amount of leaseable space, personal guarantees, purchase option, subleasing, required hours of operation, dedicated parking, who is responsible for obtaining variances related to signage and usage of the retail space, expansion options, first right of refusal, can the tenant keep the TI allowance not needed for construction, can the landlord relocate the tenant if the space is needed to accommodate another tenant, late payment fees, the mechanics of providing notice of default and any options for the tenant to cure the default, mechanics of dispute resolution between the landlord and tenant, and a right to terminate if your sales do not stabilize at a minimum level.
Complete LOI First
Complete and obtain an executed copy of the letter of intent before beginning on the lease agreement. The primary objective of the letter of intent is to negotiate and agree upon the business issues. The lease documents these agreements. Discuss fees to negotiate the lease with your attorney. Agree upon an hourly rate and estimate of the total fees. Agree the attorney will call if it appears the cost is going to exceed the estimate.
The following sections of the leasing retail space article focuses upon issues which merit commentary.
Percentage Rent
Percentage rent -- make sure the agreement regarding percentage rent is clear. If percentage rent is based on sales, define sales. For example, is sales-tax remitted to the city and state included in sales? It is even more difficult to define net profits, which is why most percentage rent leases are based upon sales instead of profits. Attempt to look at the definition of net profits from a detached perspective. If you gave the definition to a six grader, could they understand it?
Renewal Options
Renewal options -- tenants love them and landlords prefer to avoid them. In general, a larger number of shorter renewal options are better for the tenant. In addition, shorter notice periods to announce the tenants intend to renew are desirable for the tenant. Landlords prefer as much notice as possible regarding whether or not the tenet plans to renew.
Renewal Option Rental Rates
Renewal option rental rates -- tenants typically want fixed rental rates for renewal periods. Landlords typically want the rental rate based upon market rent. Agreeing upon market rents can be difficult and expensive. Reasonable people can disagree regarding the level for market rent for a retail space. For example, should the premium for an end-cap space be 10% or 100%? Retail space is not fungible. It recently signed lease for retail space within the same center provides insight into market rent. However, in most cases it will not clearly defined market rent.
The Market Research and Consulting division of O'Connor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance. In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.
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