Let’s wrap up our leasing terms and definitions series.
We first gave an overview of equipment leasing in general, and then got into terms, phrases, and definitions. That was pretty interesting because I’m sure a lot of folks didn’t realize terms like “monthly rent” applied to equipment leases as well.
We then got into the wear and tear clauses, and what they entail. We also learned it’s a little deeper than “don’t scratch the paint”. Mixed into those two posts was the residual value, and how the types of lease, length, and wear and tear all impact the residual value.
I then got into the topic of insurance, and the why’s and how’s of it all. This is pretty important because a lessee needs insurance even if they don’t own the item, and (surprise surprise) their general insurance may not cover the leased equipment like they think it will.
And I just used the word “lessee”, so it’s good to point out we also learned the difference between lessee and lessor (the lessee is you, and the lessor is the lender/leasing company, in this case, Crest Capital).
So are we done with leasing? As far as equipment leasing terms and definitions are concerned we are, but I do have a few more points I am going to cover in the near future. Specifically, I’ll do a post or three about end of lease options (lease renewals, purchase options, giving the equipment back, etc.) And it’s also prudent to discuss what happens in the case of early termination. Look for them shortly.
In the end, leasing is an excellent way to acquire the equipment you need. And to put it into a 2023 context, it’s also very attractive right now due to economic uncertainty regarding rates and inflation. Leasing lets you get the equipment you need without the longer commitment.
And on that note, let me also state that almost any type of equipment can be leased. Too many people forget this, thinking that only vehicles can be leased. Not true at all. This was posted earlier, but let’s do it again: here are all the different equipment lease types offered by Crest Capital.
It’s no secret as to why this blog is called “The Lease Guy”. Leasing is awesome, and we love it. And if you need equipment, you will too!