Loans vs Leases: The Choice is Yours
COMPARING YOUR EQUIPMENT FINANCE OPTIONS
Understanding the differences and advantages of loan and lease products can help ensure that your business benefits from the right equipment financing solution available. Our team is always here to help guide you through the process.
Some Advantages of Loans:
• Once the loan is paid off, the vehicle is yours without further obligations• Loans permit specialty equipment (leases may not)
• A wide variety of payment plans are available to suit your needs
• Equipment ownership can allow you to claim depreciation and receive a deduction for interest paid[2]
Some Advantages of Leases:
• You only pay for the time you have the equipment, which typically results in lower monthly payments• Shorter term leases allow you to always enjoy the latest in innovation and efficiency
• Various end of lease options available, including turning the equipment in, purchasing the equipment, or extending the lease
* Lessor & Lessee take pro-rata portion of the estimated residual value risk.
[1] Program eligibility, actual payments, terms and down payment are determined by Navistar Financial Corporation’s credit team based upon creditworthiness of customer.
[2] Navistar Financial Corporation and McCandless Truck Center do not provide or endorse any tax or accounting advice or tax strategy to its dealers, customers or potential customers. You should consult with your own tax and accounting advisor on all such matters relating to the loan or lease financings described.
[3] TRAC leases are limited to motor vehicles leased to businesses and must be used for commercial purposes at least 50% of the time.
[1] Program eligibility, actual payments, terms and down payment are determined by Navistar Financial Corporation’s credit team based upon creditworthiness of customer.
[2] Navistar Financial Corporation and McCandless Truck Center do not provide or endorse any tax or accounting advice or tax strategy to its dealers, customers or potential customers. You should consult with your own tax and accounting advisor on all such matters relating to the loan or lease financings described.
[3] TRAC leases are limited to motor vehicles leased to businesses and must be used for commercial purposes at least 50% of the time.