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LEASE OR BUY A VEHICLE

HOW YOU DRIVE AWAY IS UP TO YOU.

Lease or buy a vehicle?

Equipment leasing vs. equipment financing

Which is right for your business, a flexible lease structure or a commercial vehicle loan? There is no pat answer for every business. The right financing option for your business will depend on several factors, including equipment type, balance sheet and cash flow concerns.

For example, what will happen to the value of the equipment? Will it appreciate or depreciate over time? What will the value of the equipment be at the end of the financing term? Which option provides the best tax advantage to you now and in the future?

The REV Financial Services’ team of equipment and financing experts offer proven industry experience. Our focus on our customers’ needs is the reason why we’ve been so successful. We’re ready to provide you with the products and services you need to grow your business.

BUY OR LEASE

common questions to ask before you decide to buy or lease.

OWNERSHIP

You own the vehicle and get to keep it as long as you want it.

You don't own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.

UP-FRONT COSTS

They include the cash price or a down payment, taxes, registration and other fees.

They typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees.

MONTHLY PAYMENTS

Loan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.

Lease payments can be lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees.

VEHICLE RETURN

You'll have to deal with selling or trading in your car when you decide you want a different one.

You can return the vehicle at lease-end, pay any end-of-lease costs, and walk away.

FUTURE VALUE

The vehicle will depreciate but its cash value is yours to use as you like.

On the plus side, its future value doesn't affect you financially. On the negative side, you don't have any equity in the vehicle.

MILEAGE

You're free to drive as many miles as you want (But higher mileage lowers the vehicle's trade-in or resale value.)

Walk away leases limit the number of miles you may drive. You'll have to pay charges for exceeding your limits.

END OF TERM

At the end of the loan term, you have no further payments and you have built equity to help pay for your next vehicle.

At the end of the lease term, you'll have to finance the purchase of the car or lease or buy another.

CUSTOMIZING

The vehicle is yours to modify or customize as you like.

Because the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you add will need to be removed before you return the car. If there is any residual damage, you'll have to pay to have it fixed.