Should You Choose Long Term Car Leasing Or Private Car Leasing?

Generally, most people will choose to have a short term car lease. However, some may want a car for a bit longer and that will lead them to the option of long term car leasing. With long term car leasing, you can lease the car for years, even until you eventually pay it off. This is an option that is favorable to some because many short term lease contracts require the car to go back to the dealership at the end of the lease. What do you do if you want to keep the car then? You can also look at private car leasing, which generally comes in the form of lease swapping or lease transfers, or even sub-leases.

When you sub lease a car, you are leasing a car from someone who is leasing it from a dealership. They may not be able to completely afford the monthly payments, so they offer the sub lease to you to cover the payments and then some. This can be more expensive than leasing from a dealership, but many consumers choose it if they don’t have the best of credit. With the sub-lease, they give you a lease for a car that they own. It works for you and it works for them, but make sure it works for the dealership before you begin leasing. The other forms of private car leasing involve you either taking over a lease that is transferred to you by someone else, or swapping a lease with someone who can afford it, while giving you their cheaper lease.

If you want long term car leasing, you get the benefit of lower payments per month, and you get the option of having a car you really like for a longer period of time. If you plan on holding onto a car for several years and even paying it off, then choosing this option is a good idea. There are plenty of good cars to lease on a long term lease, and it all depends on what options you are looking for in your car.

Whether you want to lease short term through private car leasing with sub-leases, lease transfers, or lease swaps, or if you want long term car leasing, there are many places and options to choose from. Maybe you want to go online for a cheaper rate, or maybe you want to shop locally to support local people and businesses. The choice is yours, but take your time in making it.

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All About Coffee Machine and Equipment Leasing

Coffee Machine and Equipment Leasing

I have been a consultant involved in the Coffee World for some years, advising clients and helping them choose the right equipment to suit their needs. Equipment can of course be purchased with good old fashioned cash or a Business Loan from your Bank. However, the latter is not so easy these days. Another alternative that has seen growth in the last few years is Equipment Leasing. Leasing is available in many countries and certain Terms and Conditions vary. Tax benefits that Leasing can bring also vary from country to country. I can only speak from my knowledge of the UK market. I advise clients on many Coffee Machine Leasing packages to suit all their business needs. One thing the client doesn’t always realise is that they can add other equipment requirements to their Lease Agreement. For example; Kitchen Equipment, “front of house” equipment and fittings. You name it – It can be Leased.

What is Equipment Leasing?

Equipment Leasing is the process of securing the use of pretty much any type of equipment these days; Office equipment, Computers, various types of machinery. Within the Catering Industry this could mean EVERY piece of equipment used in the kitchen and “front of house”. Ovens. Toasting Ovens. Refrigeration. Ovens and Cooking ranges. Deep Fat Fryers, Food processors etc. Front of house equipment would not only include the very important COFFEE MACHINE, but may also include Panini Grills. Counters. Refrigerated Serve Over Counters. Tills. EPOS systems. Leasing can even be used to finance fabrication works, shop fittings, shop furniture, tables and chairs. Even structural building works can be Leased. All these things are needed but cost money, which is not always readily available. Therefore Leasing can provide the financial means to get the right equipment when opening a new coffee shop, restaurant etc. The other benefit is that Leasing can relieve cashflow. For established businesses Leasing can be used to refurbish and replace equipment.

By entering into a Lease contract to utilize equipment for a specified period of time, a business or individual can enjoy the benefits of usage without having the need for a large capital injection of CASH! Many industries make use of equipment leasing. In some instances, choosing to lease necessary equipment and machinery is an ideal situation for new or established businesses with very little working capital. Rather than investing large amount of limited resources, leasing necessary equipment makes it possible to secure more up to date models and focus on the task of growing the business.

The Changing Face of Finance

Equipment leasing and equipment finance has changed greatly in the UK in the last few years. The main change, as many business owners are painfully aware, is the lack of availability of funding and finance from the High Street Banks! Although this situation can also affect Leasing, Lease companies also have access to many other friendly industry capital funders. However, some funders will only finance established businesses. A bit of a “Catch 22″ situation. This is not always the case with Leasing. However, you have to find the right Lease Company. Some 75% of all Leases that I have arranged over the last few years have been for “New Start” businesses.

Obtaining conventional Business Loans from the High Street Banks is still not good. A recent report from the Federation of Small Business (2012) stated that 40% of small businesses had been refused credit from their Bank. Also, that Bank lending had fell by some 5%. This is despite calls from the UK Government over the last few years for Banks to increase their lending to business. The Business Secretary stated that Banks were still risk adverse and a constant source of frustration to the Government. However, there could be “light at the end of the tunnel” The Business Secretary announced in September 2012 of the creation of the Government backed “Small Business Bank.” The other good news is that Leasing increased during this period. Businesses have turned to Leasing to overcome the lack of Bank lending and been successful.

There are other advantages with Equipment Leasing. It’s Tax efficient. Please speak with your Accountant about specific Tax Benefits for your business. Equipment leasing is also an easy way to update equipment. Many lease agreements include provisions that allow older equipment to be exchanged for newer models. This option can be extremely helpful when a business outgrows the capabilities of an older piece of equipment and requires something more robust to keep up with company growth.

Lease Rental – Lease to Buy – Lease Purchase?

A word of warning with the term “rental.” Some Lease Companies and Suppliers don’t give customers the option to purchase outright. At the end of the Lease period the customer has to renew the Lease for a fixed period of time or give the equipment back to the Lease Company or Supplier. This obviously can create a serious problem. Ensure that suppliers of your equipment and the Lease Company involved give their customers the option to buy outright at the end of the period. This can usually be arranged for just for just one extra months payment in most cases. Other alternatives already mentioned are; half way through a Lease you can upgrade to a new/bigger/better machine, the same as you might do when buying a car. Also, if you wish, you can usually pay off the Lease early with no penalties.

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Auto Lease, Lease Assumption, and the Car Lease Swap

What is a car lease?

Buying and leasing are car are different. When you buy a car, you become responsible for the entire cost of the car, no matter how long you keep it or how often or far you drive it. When you obtain a new car lease, you only pay for a portion of the car-that is, the portion you “use” while you are driving it. And, unlike buying, leasing doesn’t usually require a down-payment; although you may be responsible for paying certain fees and a security deposit. There are also penalties for terminating the car lease early. But whether buying or leasing is best depends upon your individual needs and circumstance. And if you do decide to lease, it doesn’t necessarily mean you’re stuck with that car for the duration of the lease term.

What is a lease assumption?

A lease assumption happens when you allow someone else to take over your lease in order to get out of your contract without incurring penalties. For instance, you’ve been driving your leased car for awhile now and want to exchange it for something different. Or perhaps you’ve found a car you’d really like to buy, but you can’t afford both car payments and lease payments. The problem is you’ve still got 12 months left to go on your lease. If you end it now, it’s going to cost you. Cue your brother, who thinks your car is quite nice and wouldn’t mind driving it himself. Since his credit is good enough, your brother can assume your lease, releasing you from your contractual obligations while avoiding any penalties. Now, you’re able to buy the car of your dreams-well, today’s dream anyway.

There are a few benefits to a lease assumption. For the one assuming the lease, there is the shorter-term commitment and lack of money-down requirements. For the one getting out of the lease, there are no penalties incurred and they are free to move on.

What is a lease swap?
A lease swap is a lease assumption that goes both ways. Someone takes over your lease while you take over theirs or someone else’s. Basically, you’re swapping one lease for another, with no need to start over with a full-term lease contract.

Why are lease swaps attractive?
Lease swaps are an attractive way to exchange cars because by swapping your lease you can 1) get out of your original lease without penalties, 2) save thousands on unnecessary lease obligations, and 3) end up with a much shorter-term lease agreement than otherwise possible. Thus, if you decide to swap a lease you have much to gain and little to lose.

For people who enjoy changing cars ever few years, or even every few months, lease swaps are the way to go. But remember, whether leasing for the first time, assuming a lease, or swapping one, once you signed on the dotted line you become responsible for the remaining lease term and amount. So, as with any contractual obligation, make sure to read the fine print before you commit.

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