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Equipment Loan: You own the machine immediately at the end of your contract only if all payments are complete.

Equipment Finance Lease: You own the equipment and can choose a bargain purchase option to reduce your payment. You also have the option to return equipment at lease-end.*

Equipment Operating Lease: We own the equipment, but you have the option to purchase it at fair market value or predetermined option amount at lease-end.*

Equipment Rental: The rental provider owns the equipment, but there may be a rent-to-own option.

Equipment Loan: You build equity the quickest with this option.*

Equipment Finance Lease: You build equity, but the build up is slower than an equipment loan.*

You do not build equity with an equipment operating lease or a rental.

Equipment Loan: You take the depreciation.

Equipment Finance Lease: You choose to take the depreciation.

Equipment Operating Lease: We, as Cat Financial, take the deprecation.

Equipment Rental: The rental provider takes the depreciation.

Ranking the typical monthly payment from highest to lowest:

1. Loan
2. Rental / Finance Lease
3. Operating Lease  

Equipment Loan: Yes — qualified customers can choose from different term lengths and schedule payments monthly, quarterly, semi-annually or annually.*

Equipment Finance Lease: Yes — qualified customers can choose from different term lengths and schedule payments monthly, quarterly, semi-annually or annually. Plus qualified customers can easily modify their lease contracts as needed.*

Equipment Operating Lease: Some — qualified customers can choose from different term lengths but pay monthly (we may consider other payment schedules).*

Equipment Rental: Yes — renting equipment with the Cat Card provides the most flexibility for payment options with a line of credit.*

In short, no. There are no early payoff restrictions.

Equipment Loan: No — you’re not penalized for paying off an equipment loan early.

Equipment Finance Lease: No — you’re not penalized for paying off a finance lease early and you can pay off at any time.*

Equipment Operating Lease: No — you can pay the remainder of an operating lease off at any time at the casualty or fair market value.

Equipment Rental: No — because you only pay for the equipment for the length of the rental agreement.

Equipment Loan: You pay property tax (varies by state).

Equipment Finance Lease: You pay property tax (varies by state).

Equipment Operating Lease: We pay property tax, then invoice you.

Equipment Rental: The rental provider pays property tax.

Equipment Loan: You are responsible during the loan and once you become the owner. An Equipment Protection Plan (EPP) and Customer Value Agreement (CVA) can help you budget and lock in these costs.

Equipment Finance Lease: You are responsible for keeping the machine in good working order. Avoid non-compliance charges with an EPP and CVA.

Equipment Operating Lease: You are responsible for keeping the machine in good working order. Avoid non-compliance charges with an EPP and CVA.

Equipment Rental: The equipment rental provider handles maintenance and service during your rental period, but these costs are likely factored into your rental payment.