Equipment Lease Rate Table is the tool of the trade for equipment dealers and equipment sales reps. That puts them at an advantage in lease negotiations. You need this information in order to level the playing field which is the lease bargaining table.
The Equipment Lease Rate Table shown below is a guide for comparison.
Once you know the best price of the equipment you want, you can calculate where the payment should be using the equipment lease rate table. The rates in the table are real rates. These are not hypothetical lease rate factors. It should also be noted these rates are for office supply and equipment. Rates will vary by industry due to residual values differing. For example, a copier may have a 7% residual at 60 months, but a bulldozer may be as high as 35%. In other words, copier rates will be higher than bulldozer rates given a lower residual value.
What You Can Do With the Office Equipment Lease Rate Information above.
- figure the value (equipment price) of your last lease. Simply figure the net payment by taking the total monthly payment amount subtract sales tax and insurance if applicable. Use the resulting net payment and divide by the rate in the equipment lease rate table that applies to your term and buyout. This will give you the total invoice amount that the equipment company received from the leasing company. If that number is high, then you paid a higher rate for your lease. The alternative is that you paid the lease based on an inflated price for the equipment. In either case, now you know. Sorry if the revelation is alarming, but we can help next time if you want us to.
- Figure out the payment on equipment you are looking at. You now know how to calculate the payment.
- Compare with what someone else is offering you. If they are higher, perhaps you want to reconsider. We can help you if you have questions.
- Use the rates as leverage to get a better deal. Be careful though. If the rate is substantially higher, you should wonder what else is going on with the deal.