Some Important Facts Leasing Advantages Can I Qualify? Lease Options What Can Be Leased? Why Integra Leasing? How To Begin Leasing Glossary Links This section of our website will provide you with information about leasing and provide answers to some of your questions. If you have any other questions, or would like to apply for credit, please feel free to contact us or use the secure online credit application forms on this website. Getting a lease quote is as simple as calling Integra and giving us the approximate value of the equipment and the term required (usually 24 or 36 months for transactions under $25,000). You will also be asked some basic questions about your credit circumstances and options available to you will be explained. We can also provide detailed Leasing versus Borrowing or Purchasing comparisons. To do this accurately, we will have to know your marginal tax rate and in the case of a loan comparison, we would have to know the loan interest rate. Keep in mind that a lease rate is fixed for the term of the lease, so it should be compared to a fixed loan rate which is usually higher than a floating rate. SOME IMPORTANT FACTS ABOUT LEASING You can shop around for your lease financing just as you can shop around for the equipment you want to acquire. You DO NOT have to use the leasing offered by your equipment vendor. In most cases, equipment vendors use a third party company for the lease financing that they offer. There are many reasons why a vendor chooses a leasing company to partner with, but hopefully the main reason is so they can offer the best deal for their customers and not use leasing as a hidden profit centre. You can get pre approved for a lease before you go shopping for your equipment. This allows you to negotiate with your vendor. You can acquire equipment from more than one vendor (e.g. computers from one supplier and office furniture from another) and have it all on one lease which makes it a lot simpler and can result in a significantly lower lease rate as the rate decreases at higher price levels. For example, the rate on a $5,000 lease should be lower than the rate on a $4,500 lease. Lease rates are usually quoted on a rate per $1,000 of equipment value. Ask for this rate then you can be sure that your lease payment is determined by the actual equipment cost. Don't forget, it is very important to know what happens at the end of the lease term. This is a significant factor in the overall cost of leasing. There are many possible options at the end of a lease term: (1) Purchase equipment for Fair Market Value (FMV)*. (2) Purchase equipment for a predetermined Early Purchase Option. (3) Full ownership of the equipment at the end of the term ($10.00 end). (4) Return equipment to lessor. (5) Upgrade equipment. (6) Renew the lease. (7) Continue making the rental payments. *If the end of term is FMV this is an unknown amount and can be as much as 50% or more. Some leasing companies will tell you that it will not be more than 10 or 15%, but be sure you get it in writing because after several years, you could have a difficult time proving a verbal agreement exists.   Contents | Next Topic>> Copyright © 1998-2000. Integra Leasing Corp. All rights reserved.