LOAN VS LEASE
LOAN VS. LEASE: WHY LEASE From Paradigm Fleet services sales AND LEASING
Comparing a loan to a lease is like comparing mountains and lakes. Let's have a quick look at some basic differences between a loan purchase and a lease.
A loan is designed for your business to own equipment as a depreciating asset. On the other hand, a lease is usually designed for your business to acquire the equipment by renting it over a specific agreed term. By renting equipment, it may provide some important tax advantages depending on your business.
Commercial auto leasing can provide your business with the option to own the equipment at the end of lease with an end of lease buy out. Depending on the type of loan you business acquires, the loan rate may be fixed or variable and the terms repayment and penalties of cancellation vary.
A lease rate is typically always fixed and the repayment terms and penalties of cancellation also vary. The customers or lessee should always review their specific lease agreement for full details. While commercial auto lease terms will vary, there are generally some additional penalties for early cancellation. For further information please contact one of our leasing agents.