Q: How much is the payment? This does not usually include tax.
Q: What is the term / how many payments? Generally 12-60 months
Q: How many payments in advance? Usually one or two – sometimes
(especially for new companies) a down payment of 10% of cost + 1 payment in advance.
Q: Are there any other fees? $200 is common as a document fee – sometimes a little less
– titled vehicles could have as much as $500 in associated fees
Q: What happens at the end of the term?
$1.00 buyout is most common (you own the equipment after making the final payment)
10% purchase option (10% of original cost is paid at end of term) – sometimes called a PUT
for “payment upon termination” which is not always optional.
FMV or Fair Market Value – these create most frustration at end of term because
the future value is not predetermined – we rarely offer this option.