When you are shopping for an equipment lease, are you truly comparing an “Apples to Apples” quote? The things you are not being told may actually cost you more money in the long term and in the small print.
Interim Rent - Is there an interim rent provision? Does it specify when your interim rent starts and stops? Are you billed for partial months /periods to formal lease inception? How many advance interim rent payments will there be?
Term- What is the true term of your lease including advances? Will the advanced payments be applied to that term? Are there any automatic rollover, renewal or extension clauses built into the lease term?
Taxes - Does the payment include all taxes either Use or Sales tax? You can’t have both.
Fees - What are all of the additional fees you will be paying? There could be documentation fees, inspection fees, execution fees, credit investigation, legal review, or other fees you may not be aware of.
Rate - What is the money factor being used to calculate the payment for each term you are reviewing?
Equipment Cost - What is the net equipment cost the quote is being calculated from?
Deposits & Other Payments - Is there a deposit, down payment, cap reduction, commitment fee, prepaid purchase option due at inception and how does that affect the term and how much is it?
End of Lease Options - What is the purchase (buyout) option, if any? How is the option to be exercised? Do you need to give an advance notice and how much time do you need to notify the lessor of your decision? If you miss the date, is the lease automatically extended (Evergreen clause)? What is the residual or termination fee at the end of your lease?
Termination Fee - Does the lender charge a termination fee? In other words, when you make your last payment, is there an additional fee to close the lease?