Ways of Leasing

If you decide to lease, you're not alone. Eight out of 10 companies lease some or all of their equipment, according to the ELA. There are three ways to lease equipment: you can select and order the equipment and then find financing through a lessor; you can choose the equipment through a vendor or manufacturer that offers leasing; or you can get the equipment directly through a lessor.

The two most common leases are operating and finance. An operating lease works well if you plan to update or replace equipment often. Operating leases also allow you to use the equipment without ownership and return it at lease end. A finance lease is a full payout, non-cancellable agreement in which you are responsible for maintenance, taxes and insurance. This type of lease is best used when you want the tax benefits of ownership or expect the equipment's residual value to be high.

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