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Because different companies quote lease rates in different ways
and there are numerous terms not readily disclosed that can cost
you money in the long run, the following information is necessary
for you – or us - to determine exactly what you're getting.
Here are nine questions to ask - the answers to which should be in writing
and made part of the lease agreements.
1- Payments - What is the exact monthly payment? On what net cost
figure is this quote based? How much will it change if the equipment
cost changes?
2- Interim Rent - Is there an interim rent provision (billing for
partial months/periods before the lease really begins)?
3- Taxes - Does this payment include all sales/use tax?
4- Fees - Are there documentation, credit investigation, inspection,
legal review or other fees I will have to pay? How much are they?
5- Term - How many months in the initially committed term (including advance
rentals)? Is there an automatic rollover or other extension provisions?
6- Advance Payments – How many advance rental payments are
due at signing? Are there any other payments due such as security
deposits, down payments, cap reductions or prepaid purchase options?
Are these payments refundable if the lease does not commence?
7- End of Lease Options and Obligations - Is there a purchase option? If so,
for how much? Is there a renewal option? When must these be exercised? Is advance
notification required? How far in advance? Is there an automatic rollover or extension
if that date is missed? Are there any balloon payments, residual guaranties or
other provisions requiring payments at lease end?
8- Prepayment - If we elect to prepay the lease, how is the net payout figured?
Is there a rebate for unearned interest?
9- Deposits/Commitment Fees - Is a deposit or payment required before a formal
credit approval is issued? If so, are there any circumstances under which it will
not be returned if we decide not to proceed with the transaction for any reason?
Still unsure? Call 888/852-7560 and let us help you sort it all
out.
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