Lease Finance Buying Guide
Things to watch out for
Aside from the disadvantages already mentioned, there are
a number of things you should be aware of as regards lease
financing:
- Return of Asset Conditions. If you choose to return
the asset at the end of your lease, the condition in which
and the place where it must be returned are important aspects
to consider carefully.
- Notice Period. If your lease includes the option
to renew take note of any time periods in which to give
notice in case you do not want to renew the contract. Some
leasing companies will automatically renew the contract
if you fail to give notice.
- Purchase Rights. If negotiating the right to purchase
the asset at the end of your lease, a predetermined fixed
price offers more value as the 'fair market value', which
theoretically is always available to you.
- Maintenance Responsibility. Clarify which service
and maintenance programs are included in the lease. If you
are responsible for service and maintenance, make sure you
do not have to provide an unreasonably high degree of it.
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