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Financing Available- All credit types

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andrewpond

Well-Known Member
Joined
Sep 29, 2012
Messages
53
Location
canada
I have no comment about this company. But I am learning expensive lessons from dealing with another company. Make sure you ask/demand an amortization. Also read total lease including boiler plate/fine print! This will show pmts and rates. I was verbally told rate was 8.25percent and 24 mth lease term. While doing monthend books, I looked at payments and thought they were very high. Used website to reverse calculate interest rate turns out their rate was actually 14.25percent. Also the lease term was 24/27. I agreed to 24 mths with 10% buyout at end lease. What they slid in was this 27 mth ****. If u don't give them notice at 21 mths that u plan to buyout @24 in automatically goto this 27. Then u have to buy the machine back from finance. Company at market value!!! After u already paid them for it when interest!!! I also missed that the buyout only occurs after 24 mths!! Not 24 pmts!!! I am trying to sell the machine (turns out machine bought from my dealer is price of ****) the fiance company wants 27 payments plus 10%buyout to brake lease!!
Be very carefully of company that offer financing for good and bad credit!! Finance companies make billions of dollars!!
 
E

ewells79

New Member
Joined
Nov 8, 2012
Messages
4
Location
Montana
Response to Andrew

Hello,
I just wanted to touch base with you on this post. You are correct, there are alot of fishy people in the money industry. We for one, do not ask for upfront money at all. Like any loan/lease, you should read AND udnerstand everything. Yes, finance companies make money, that is the point. But good finance companies, have no issues not charging upfront fees. Yes, like loans, there is a payoff due. With a lease, the leasing company buys the equiptment for the borrowers behalf. The contracts (with any company) will be to pay off the contract in full like you would a loan. With a loan, you don't get a free and clear piece of machinery, after a couple payments.
Is leasing the best route? It really depends. Credit, cash down, use ect...When I was a commericial officer at a bank, we required 20-30% down for equipment. Most people can't afford this and if they can, most CFO's understand the tax benefits of a lease and will elect to take a lease even with large downpayments. Leasing is usually alot more flexible in regards to credit, time in business, equipment type, ect.

There is always a trade off for different financial situations. Leasing would not be around if there was not a huge need. Like Andrew states, look out for shady leasing/finance companies. Never pay upfront fee's to get a deal approved. Work with reputable dealers as well. In trying to calculate rates, there isn't an interst rate on a lease. There is a factor that is used and yes, you can run calculation to see what a comparable interest rate is. I don't think anyone would have an issue that really needs a piece of machinery to increase business to lease. Let's say for example you wanted to buy a dozer for 50k. A bank will require 20% down at least or 10k cash down. A lease, you may pay 1st and last payment. Also, if there are upgrades, shipping, taxes ect, a lease can include these in the financing. As always, understand what you are getting into with ANY financial transaction and don't sign anything until you do.

I have worked in Billings, MT for over 10 years in the finance world as a commerical loan, real estate loan and licensed investment broker. Feel free to google my name. Best of luck!
 
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