We are available to help you decide if leasing is right for you. Simply call 888-2PITMAN (888-274-8626).
Leasing provides risk-shifting financial programs that lower costs, avoid obsolescence, and helps establish and maintain a competitive advantage. Leasing at Pitman moves at the speed of business: on-line application, automated credit scoring, application decision within hours of receipt, speed, flexibility, and expert industry knowledge, all combined to explain why 8 out of 10 businesses use leasing.
The process of buying, maintaining and disposing of equipment can distract valuable IT resources from mission-critical priorities. Leasing can be implemented as outsourced asset management. How? Call Us. No variable interest rates here. Fixed payments enable a lessee to more accurately predict equipment costs and cash needs. Your budget allows the purchase of only what you absolutely require...not what you really want and need? Ask how leasing can stretch budgeted dollars to acquire the quality and quantity you really need. Leasing does not weaken your borrowing power because money has not been borrowed. Lease and your existing credit line stays healthy and available for the unforeseen future.
When today's equipment is likely to meet long-term needs, purchasing is often the most cost-effective acquisition choice. If, however, your needs are likely to change within the next few years, leasing may be the smarter alternative.
Several points can be used to differentiate leasing from purchasing. You can find side-by-side comparisons below:
| Lease | Loan | |
|---|---|---|
| Terms | Lease terms are usually between 2 to 5 years. | Loan contracts are usually signed for more than 5 years. |
| Type of Equipment | The shorter term and lower monthly payment of a lease agreement allows you to acquire new equipment every 2 to 5 years. | The higher monthly payments usually make owning new equipment every 2 to 4 years unpractical. |
| Ownership | You don't own the equipment. Unless you decide to purchase it, you must return it at the end of the lease. | You own the equipment. |
| Ownership | You don't own the equipment. Unless you decide to purchase it, you must return it at the end of the lease. | You own the equipment. |
| Up-front Costs | A typical lease would require first and last payments in advance. Other options are available upon request. | Up-front costs usually include down payment, taxes, and other minor charges. This amount is usually 25% of the cost of the equipment. |
| Monthly Payments | Fixed payments. Calculated based on the equipment's depreciation during the lease term, rent charges, taxes and other fees. They are usually lower than monthly loan payments | Monthly loan payments are based on the total amount of purchase price, plus interest charges, taxes and other fees. They are usually higher than monthly lease payments. |
| Early Termination | If you choose to end the lease early, you may. It is a rare situation that would make terminating a lease during its term an advisable option, but there is no penalty for early payment. | You are responsible for paying off the loan. |
| Future Value | The lessor bears the risk of the future market value of the used equipment. Another option is the $1.00 Buy Out. At the end of the lease, you pay just $1.00 to purchase the equipment | If you decide to sell the equipment at the end of the loan terms, the risk of the future value is yours. |
| End of Term | Lessee has an option of continuing to lease, purchasing the equipment, or returning to the Leasing Company. | At the end of the loan term, the equipment is yours to keep. |