Leasing Benefits

Is a lease right for you?

Leasing Benefits

The true benefits of leasing are realised in different ways.

Benefits of Leasing

Benefits will arise from an administrative point of view, particularly with large fleets of equipment. Leasing of new tractors from Power & Earth will help ease the pressure on your employees who would have been tied up looking after a fleet of motor vehicles. They will be freed to Experts in large tractor sales and lease or hirespend time on more productive tasks. Power & Earth will take care of all major breakdowns. A phone call to us is all it takes. From a budgeting perspective, leasing provides certainty; there is a fixed cost for the lease of the asset that can be taken into account for forecasting and cash flow purposes.

With purchase of equipment, the market value generally falls far more quickly than the equipment can be depreciated. By leasing tractors, a company has the choice to switch to the latest equipment at the start of the lease, or receive a new machine next season. The economic risk of attempting to recoup the equipment’s residual value, either by on-leasing or selling, falls back onto Power & Earth, which is better placed to access resale markets than is the lessee company.

 

Tax Advantages of an Operating Lease

There are two types of leases for income tax purposes: a finance lease and an operating lease. Most leases of equipment are operating leases, which have a simpler tax treatment for the lessee than does a finance lease.
We need to go through this to see if you agree.

Under an operating lease, the lessor’s objective is to “rent” the asset to a lessee for a return. The lessor retains the risk and reward of Earth Moving Machinery for sale hire lease nz austowning the asset. Under a finance lease, the lessor is essentially funding the lessee’s acquisition of the leased asset. It is generally the lessee who assumes the risks and rewards of ownership of the lease asset, the lessor’s objective being to derive “interest” income.

Need advice on your lease vs purchase options?

 

We specialise in short-term and seasonal/annual lease agreements that are customised to your specific needs. Power & Earth also specialise in the sale of ex-lease tractors. We have a number of ex-lease machines for sale and on our books. These are usually in two categories: under 2000 hours or under 1000 hours. They are less than two years old and are still covered by the remainder of the transferable factory warranty.
Please contact us to discuss great deals on these ex-lease tractors.

Talk to one of our experts to investigate your options.

Leasing

Leasing Benefits

Leasing Options

Contact Us

Back to top