Automotive Equipment Financing
Your customers rely on you to fix their cars for their safety. And in turn, you rely on your equipment. If your equipment isn’t running efficiently and effectively, your business will suffer. But the strains of buying all new equipment can be so daunting. Usually, the best option for you will be to replace that old equipment and replace it with new, financed equipment.
Benefits of Automotive Equipment Financing
Here are a couple of quick considerations for why you may want to finance or lease your Automotive Equipment:
- Preserve Cash
- Flexibility of Keeping or Returning Equipment
- Avoid the Pitfalls of Technical Obsolescence
- Tax Benefits
- Improves Debt Ratios
- Fixed Rate and Payment Options
- 100% Financing
As always, and especially today, cash is king. If you can manage to finance your largest assets and save your cash for other working capital needs, your business will be able to stay ahead of the pack. The most important thing to keep in mind is that your automotive equipment is an income producing asset, and it will pay for itself.
Types of Automotive Equipment
Generally speaking, most automotive equipment is considered to be good collateral. Larger pieces of equipment like the ones mentioned below can be financed from 1 to 5 years:
- Analyzers
- Brake Repair Stations
- Engine Machine Shop Equipment
- Alignment Machines
- Air Compressors
- Auto Lifts
- PressesWelders
It will never be cheap to replace any of these pieces of equipment. A couple of considerations for that thought is deciding between a capital lease and operating lease. A capital lease will offer you the ease of purchase at the end of the lease term and allow you to keep the depreciation. The operating lease can potentially get you to a lower monthly payment and allow you to improve your debt ratios. And if you can afford the payments, it may also be a good idea to choose a shorter financing term in order to avoid committing your business to a long term lease or loan. Which ever option you choose, you can rest easy that you will not pay a single dollar for that piece of equipment until it earns you a dollar.
