Leasing Used Equipment can Benefit the Bottom Line and Still Meet Your Needs
Do you realize you can lease good used equipment? It doesn’t matter whether you need a copier, a road grader or an industrial machine. You can find most popular assets used. You can lease just about anything that has value. There are sources for leasing used equipment all over the world and probably closer to you than you realize. Even some of your favorite new equipment dealers may handle leasing used equipment. If they have used equipment sales, they also will have used equipment leasing.
Who Benefits Most from Leasing Used Equipment?
Anybody who is on a budget can benefit from leasing used equipment. You can benefit from leasing used equipment. Its not a different method than leasing new equipment. I know it sounds contrary to what the large dealer may tell you. On the other hand, remember that the large dealers want you to go for brand new equipment. Why would a mega millions dealer rep sell you on the idea of used equipment? They wouldn’t. Don’t get me wrong, new equipment is wonderful for a while. If you’ve got unlimited capital, by all means don’t consider anything but the latest and greatest. However, I suspect if money were no object, you wouldn’t be reading this.
How Can Leasing Used Equipment Work for You?
If you read my post on calculating lease payment, you already have the rate table to help you figure out costs. Apply that information along with the lease shopping skills I taught in my article shopping for equipment lease. Whether the equipment you seek is new or used, makes no difference as to the procedure. You will find that leasing companies will generally fund your lease at the same rate. The exception you may encounter is that they may require a shorter term, which may be wiser anyway. Many smaller companies offer trade ins and lease returns at attractive rates. You may find those small independent dealers can give you a lot of bang for your buck by leasing used equipment.
A Specific Example as a Model for Leasing Used Equipment
Suppose you had your eyes on a $15,000 new color copier. I’ll bet you could get everything you want in a machine that costs half that much or less and only be two years old. Specifically, I know right now of a model that is less than two years old that could be purchased for well under 50% of its deeply discounted new price. I happen to own it, but its just an example. It’s really not a rarity at all. So, lets do a little math and calculate the payment for 39 months. My price is $6,500 x .03192 (from the equipment rate table 39 month, $1.00 buyout) = $207.48. That is your lease payment for 39 months with a $1.0o buyout. Compared to a new discounted lease based on a value of $15,000, you save more than 50% over the lease term. Keep in mind, you have service requirements on new and used equipment. So, you will want to negotiate the best service contract or cost per page to meet your needs, in addition to the equipment lease.