Benefits of Buying
To buy or not to buy - that's the age-old question facing many of our customers. Although leasing may seem like a more manageable way to purchase equipment, the benefits of buying equipment may outweigh the initial costs.
Buying may cost less in the long run
Although a lease may cost you less to run machinery on a monthly basis, if you opt to purchase the equipment when the lease ends, you may pay more than if you had financed it initially (assuming you finance the remaining balance owed at the current interest rate).
Buying offers an easy way out
If you're unsure about how long you want to keep equipment, buying gives you the freedom to sell anytime without the penalties typically applied when canceling a lease.
Buying can provide a sense of pride
Buying helps you capitalize on making a long-term commitment to maintaining your equipment. If you properly care for your machinery and take pride in keeping it in good working condition, buying may be right for you.
Buying is simple
If you purchase or finance equipment you own it. There's no need to keep track of lease terms, residual rates, lease contract language, penalties and other cumbersome issues involved in leasing. It's the simpler means to the same end.
Benefits of Leasing
Leasing means different things to different people. At Nortrax, leasing means:
Leasing means less cash down
Normally leasing does not require a large initial payment, and sales tax is usually divided and paid over the term of the lease.
Leasing brings lower monthly payments
With a lease you are not purchasing the whole piece of equipment. Rather, you are entering a contract to use a portion of the equipment's value. Your payments will be based on the equipment's depreciation, not the full cost of the equipment.
Leasing lessens the cash flow crunch
Because you are paying less monthly, extra cash you have is available for other investments.
Leasing means off-balance sheet financing
If you are a contractor, leasing your machinery leaves you in a better equity to assets position and may assist you in getting bonded.
Leasing lowers your long-term commitment
When you lease you know exactly what your options will be at the end of the lease term. The risk of obsolete machinery is virtually eliminated.
Leasing gives you the "best years" of a machine's life
The early years are the best years and typically a lease contract ends before a piece of equipment has reached its prime.
*Always check with your tax or financial advisor for tax implications in your state.
Rental Purchases
When the scope of your upcoming job is uncertain, buying or leasing equipment may not be ideal. That's why Nortrax offers an equipment rental option.
The Nortrax Rent to Purchase program offers a shorter term than a typical lease, and our rates are designed to allow you to purchase the machinery at the end of the rental term without losing the portion you have already paid.
To learn more about our Rent to Purchase program, contact your nearest Nortrax location.