Leasing

The following is an outline of some of the universally accepted financial and accounting benefits of leasing:

PROVIDES OFF BALANCE SHEET FINANCING

The leasing obligations of a business may not have to be shown on your balance sheet because they are expensed on a monthly basis. By not having to show these obligations on your balance sheet, ratios by which financial institutions evaluate companies for the extension of creadit are enhanced.

 

Makes your financial statements look better to a banker!

 

FREES WORKING CAPITAL

Leasing conserves working capital by eliminating the down payment for items that are purchased and financed. Cash is not taken from the business to purchase them outright. Leasing provides 100% of the funds to aquire the use of an asset. Your capital is free for productive use.

 

Keeps more cash in the company!

 

PRESERVES CREDIT LINES

The standard ratios that financial institutions evaluate companies for extension of credit are enhanced, making the preservation and acquisition of credit easier.

 

You can borrow more money to make your business grow!

 

IMPROVES CASH FLOW

Lease payments are normally less than finance payments plus no down payment or security deposits are needed.

 

You get lower monthly payments!

 

CONVERTS FIXED ASSETS INTO CASH

Leasing affords a company the opportunity to convert fixed assets into cash. When a company changes from ownership to leasing, the owned assets are sold for cash that goes back into the business.

 

We buy your assets and you keep your cash!

 

Open End or Termination Rental Adjustment Clause (TRAC) Lease

The Lessee agrees to a fixed number of payments and guarantees the termination (residual) value at lease end. If the vehicle sells and nets more than the residual value, the overage is refunded as excess rentals to the lessee.  If the vehicle sells and nets less than the residual value, the shortage is paid by the lessee. This rarely happens because the vehicle can be driven for a few extra months while the termination value reduces.  Once the termination value and market value are the same, the vehicle is sold.

 

Open end or TRAC leases with annual declining payments are available.  The payments for this type of lease reduce for each twelve month period that the vehicle is leased.  Open end or TRAC leases can be operating leases, meaning that they are tax deductible and are not shown as a liability on your financial statement. These leases are available with Silver or Gold Maintenance Plans.  Click here for maintenance management.

 

Closed End or Net Lease

The lessee agrees to a fixed number of monthly payments and a defined use of the vehicle.  The lessee does not guarantee the residual or termination value at lease end.  They are always operating leases.  Closed End or Net Leases are available with either the Silver or Platinum Maintenance Plans.

 

Finance Lease

The lessee uses the vehicle for the desired term (12 to 84 months) and owns the vehicle at lease end.  This is a capital lease.  Finance leases are available with Silver or Gold Maintenance Plans.

 

Documentation

We prepare all documents, including:

• Master Lease Agreement
• Lease Supplements
• Purchase Orders
• Tax
• Delivery Receipts
• Licence Applications
• Title

 

Licensing

We obtain the initial license plates and all renewals during the term of the vehicle.  If transferred to another state, we will re-title and obtain the plates for you.

 

Billing

Your bill can be separated into different locations or profit centers, if needed.

 

MOST companies choose a Locked-In Rate based on U.S. Treasury bills for the term of lease. These rates start at 1.5% UNDER New York Prime and include all Administrative Fees.

We have all kinds of ways and methods of arranging your financing. The following financing options are available to you:

• Floating Rate: A changing monthly rate based on on your choice of Commercial Paper, New York Prime or LIBOR(London Inter Bank Offered Rate).
  
  
• Fixed Rate: A locked-in choice based on U.S. Treasury Bills or New York Prime.
  
  
• Self Funding: For you lessees with sufficient resources, you can fund your own leases.

PAST CREDIT PROBLEMS?

If you have had past credit problems, but are now making a profit and have a positive net worth call us to see if we can help! We may be able to provide you with 1-2-3 vehicles. It does not hurt to ask.

We purchase domestic automobiles and trucks at factory invoice cost, less any fleet incentives that you are entitled to.  We can also purchase almost any type of equipment such as those listed below, that you need to upfit your vehicles - some items can even be added *FREE OF CHARGE!)

•   Bucket Lifts
•   Compressors
•   Cranes
•   Custom Applications
•   Flatbeds
• *Ladder Racks
•   Lift Gates
•   Radios
• *Shelving Packages
• *Tool Boxes
•   Utility Bodies
•   Winches

We can also structure the lease in a way that you will own the added equipment at term and we will transfer it to a new leased vehicle.

We purchase import vehicles at national fleet prices.

We have direct access to certain Ford, Chevrolet, GMC, and Dodge work trucks that are not even in dealers' inventories.

Through other programs, we can obtain free shelving and tool box packages as well as reduced installation charges for utility bodies and beds. These savings are passed on to you! If you need a vehicle today, we can purchase vehicles from dealerships' inventory at national fleet prices anywhere in the United States.

We can dropship and deliver a new vehicle anywhere in the United States.

Anyone can sell a nice, average-mileage, used car or truck for a reasonable price, but to sell HIGH MILEAGE AND ROUGH USE VEHICLES we have to know the market - AND WE DO!

Our staff has the experience necessary to net you the highest value possible for your used vehicle.  We do what's necessary to expose your vehicle to markets located throughout the United States with interested dealers who specialize in reconditioning and re-selling these vehicles.