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What are guys paying for lease tractors these days.
As I am running old iron, are the leases on 300 plus tractors that cheap, or just relative to having to pay for the machine all together.
I understand the benefits to upgrading constantly, I always just wonder because its not a market I am in, but I am competing agenst these people for land.
Thanks everyone for comments.
 

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Try playing with a lease calculator for awhile. There are ways to keep your payments down but you will likely always have a higher interest rate charge than on a loan. Keep in mind lease payments are deductible within their taxation year but are calculated as an operating expense that needs available income to support the payments. It would be a bad idea to lease yourself into an net income situation that appears to be an unviable operation.

 

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Yeah it all comes down to taxes. The only difference between a lease and a loan is who is holding the actual loan, and who ends up with the asset when it's done. On a lease the dealership (or the financing company) holds the loan and your yearly lease pays the loan payment for the dealer. From what I understand, when you're done leasing the dealer "sells" the machine back to themselves, liquidating the loan. If the market moves such that the machine is worth less than the remainder of the loan, you as the lessee are on the hook for that difference, just as you'd be if you'd had the loan yourself. At least that's what I've been told.

Case capital has a little online survey to kind of show when you'd pick leasing vs getting a loan: LEASE OR BUY? | CNH Industrial Capital
 
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