FIRST THINGS FIRST: IS HEAVY EQUIPMENT LEASING RIGHT FOR YOU?
Which is better for your business: construction equipment leasing or financing? There are pros and cons to both options.
Leasing makes sense when you need a machine for a short time or specific project. Monthly lease payments are typically lower than loan payments, which frees up cash for other needs. You also take on less risk than owning equipment. And heavy equipment leasing lets you try new features and technologies before you buy. With Cat Financial, qualified customers can lease heavy equipment for as short as 24 months and up to 60 months.
This Loan or Lease comparison provides a more in-depth look at the differences. Another helpful resource is this guide to the four different ways to acquire heavy equipment. You may also want to crunch your numbers with this affordability calculator as you make your decision.
OPERATING LEASE OR COMPLETE LEASE: WHAT’S THE DIFFERENCE
Did you decide leasing is the right fit for your business? Next, you’ll want to compare the Complete Lease to a traditional operating lease. Why choose one versus the other?
The Complete Lease is a smart choice if:
You want to save money. You can add preventative maintenance and protection to a traditional operating lease, but only the Complete Lease offers a reduced monthly lease payment when you package an operating lease with a CVA and EPP for the full term of the lease.*
You want to purchase additional machine hours. You can conveniently add hours once during your Complete Lease term if you expect to exceed your allotted hour amount.** That’s not possible with a traditional operating lease.
You want to purchase the machine at any time. With a traditional operating lease, qualified customers must wait until there are 90 days or less left on the agreement to purchase the machine. The Complete Lease allows you to take advantage of the built-in flexibility by giving you the option to purchase the machine at any time during your lease. Or you can choose to return the equipment or extend your lease agreement.
The Complete Lease is available for qualified customers on new and used Cat machines with terms from 24 months up to 60 months or more.** Subject to credit approval from Cat Financial. Not all customers will qualify.