Which Type of Lease is Right for You?
February 8th, 2019 - You’ve done the research, weighed your options, and decided that leasing a forklift is the smartest financial decision for your business. Now it’s time for your next big decision.
Maybe you read our article discussing the benefits of leasing your material handling equipment and decided to do just that. But wait, another plethora of choices! Now you need to decide what type of lease you would like to sign. With Toyota Commercial Finance, there are five types of leases. These brief descriptions may help in your decision:
If you want the lowest monthly lease payment possible for Toyota equipment in the marketplace, you’ll want to opt for an operating lease. You can also benefit from off-balance sheet financing and other tax advantages.
Considering owning a forklift in the future? Then a capital lease might be right for you. With a capital lease, you can own your equipment for a low purchase price at the end of your lease without having to deal with the responsibility of ownership during your lease term. Capital leases also are perfect for heavy duty use because they allow you to lease brand new Toyota equipment for use in severe applications.
The flex lease is perfect for companies who want keep the timeline of their lease open-ended. The lease is structured as two leases in one, so customers have the option to return equipment early or continue to lease the equipment at a dramatically lower monthly payment.
One Pay Lease:
Those who would prefer to pay cash instead of paying off interest will want to consider a one pay lease. Instead of a monthly payment, companies who opt for a one pay lease make one up-front payment at the beginning of the lease. Benefits include a discounted cash flow benefit, lower interest, and a lower administrative cost of processing monthly lease payments.
Retail Installment Balloon Loan:
If you’re considering both the operating lease and capital lease and want the best of both worlds, consider a retail installment balloon loan. You’ll put down a down payment and make low monthly payments just like an operating lease. At the end of the loan, you’ll have a variety of options including paying off the remaining loan amount, refinancing the loan, and paying off the rest of the loan amount.
With so many great options, choosing a lease type can be overwhelming. Your lender at Toyota Commercial Finance will be there for you to guide you through the process. And if you’re considering leasing a forklift, there’s never a better time than now. With our Four Months Free financing special offer, if you lease a brand new Toyota between now and March 31st you will have NO payments for the first FOUR months. Enjoy the extra cash to invest in your growing business while operating an industry-leading Toyota forklift today.