Auto Lease, Lease Assumption, and the Car Lease Swap

What is a car lease?

Buying and leasing are car are different. When you buy a car, you become responsible for the entire cost of the car, no matter how long you keep it or how often or far you drive it. When you obtain a new car lease, you only pay for a portion of the car-that is, the portion you "use" while you are driving it. And, unlike buying, leasing doesn't usually require a down-payment; although you may be responsible for paying certain fees and a security deposit. There are also penalties for terminating the car lease early. But whether buying or leasing is best depends upon your individual needs and circumstance. And if you do decide to lease, it doesn't necessarily mean you're stuck with that car for the duration of the lease term.

What is a lease assumption?

A lease assumption happens when you allow someone else to take over your lease in order to get out of your contract without incurring penalties. For instance, you've been driving your leased car for awhile now and want to exchange it for something different. Or perhaps you've found a car you'd really like to buy, but you can't afford both car payments and lease payments. The problem is you've still got 12 months left to go on your lease. If you end it now, it's going to cost you. Cue your brother, who thinks your car is quite nice and wouldn't mind driving it himself. Since his credit is good enough, your brother can assume your lease, releasing you from your contractual obligations while avoiding any penalties. Now, you're able to buy the car of your dreams-well, today's dream anyway.

There are a few benefits to a lease assumption. For the one assuming the lease, there is the shorter-term commitment and lack of money-down requirements. For the one getting out of the lease, there are no penalties incurred and they are free to move on.

What is a lease swap?
A lease swap is a lease assumption that goes both ways. Someone takes over your lease while you take over theirs or someone else's. Basically, you're swapping one lease for another, with no need to start over with a full-term lease contract.

Why are lease swaps attractive?
Lease swaps are an attractive way to exchange cars because by swapping your lease you can 1) get out of your original lease without penalties, 2) save thousands on unnecessary lease obligations, and 3) end up with a much shorter-term lease agreement than otherwise possible. Thus, if you decide to swap a lease you have much to gain and little to lose.

For people who enjoy changing cars ever few years, or even every few months, lease swaps are the way to go. But remember, whether leasing for the first time, assuming a lease, or swapping one, once you signed on the dotted line you become responsible for the remaining lease term and amount. So, as with any contractual obligation, make sure to read the fine print before you commit.

In this article, we've described concepts such as a lease swap [http://www.easydriverinsurance.com/2009/08/auto-lease-lease-assumption-and-the-car-lease-swap/] and Lease Assumption. Furthermore, we explain why obtaining an affordable car lease is a very appealing option for many people.

Long Island Office Space Lease - Leasing Space on L.I.

Long Island has been a growing economic power for the last 3 decades. Companies that only saw New York City as a viable option for their business years ago, now see Long Island as a strong place to rent office space.

Class "A" and "B" office space

Class "A" office buildings offer the newest offices on Long Island. These buildings usually offer newer construction, corporate location, Information desks, Exercise rooms and cafeterias. They are the top office leases that are available. They are more expensive per foot than Class "B" space in the same area. Small or start up companies with limited capital, may want to avoid this type of space initially. The rent and taxes can be rough for a small business. Larger companies will see this as the only option. A company like Merrill Lynch or Washington Mutual will normally not inhabit anything less than Class A space.

Some areas where you will find the most attractive Class A and class B office buildings:

Garden City and surrounding areas

The advantages of Garden city are that is close to the city, has good railroad access and is surrounded by other large companies. It is one of the more expensive areas on Long Island for high end building office space.

Melville

The Route 110 area in Melville has the most concentrated areas of Class A office space on Long Island. It is a very desirable location. It can be expensive, but there normally is a good amount of vacancy, so you may cut some good deals. There are Class "B" offices that are very suitable for leasing as well.

Hauppauge

Hauppauge is further east, but it is a major area for business on Long Island. It is similar to Melville, because of it's access to the LI expressway and with it's one or two primary desirable streets (Motor Parkway and Veterans Memorial Highway). It has lower Class A rents than Garden City and Melville usually. There are many fine restaurants as well for business lunches.

Bohemia

Bohemia and it's surrounding area is further south than Hauppuage. This area has very attractive lease options for space ranging from small to whole buildings. Bohemia has a lot of new buildings, and some are at half the price as Garden City. It is Near Islip Airport as well.

Most building owners are looking for 5 year leases, but 3 years is not hard to negotiate.

Furnished Instant Office Lease

These offices allow a small business to move right in to a staffed office. These set ups have become very popular for self employed business owners who may be working out of their house or paying too much for traditional office space. A staffed office includes utilities, phone lines, Internet more. The lease arrangements are very flexible, with some as short as 30 days month-to-month.

The Long Island office space market varies from year to year, but if you are flexible on what you want, you will find an attractive home for your business.

Good Luck!

Leasing Equipment Versus Buying

Short on cash, but need equipment? Consider leasing what you need. Leasing equipment may be a better alternative to buying, depending on your situation and needs.

Today, leasing is common practice in business. Over the past two years, equipment leasing has risen approximately 20 percent, according to recent research by the U.S. Small Business Administration (SBA). And 8 out of 10 U.S. businesses lease all or part of their equipment, reports the Equipment Leasing Association.

Leasing is appropriate for just about any business at any stage of development. For start-up businesses with no revenues, smaller leases--those of $100,000 or less--may be better managed on the personal credit of the owners--if they are willing to make the monthly payments.

Comparing Leasing to Buying
When you buy a piece of equipment or vehicle, you usually have to pay for it in full either by using cash or by financing the balance. After you finish paying for it, you own it.

Equipment leasing, on the other hand, is essentially a loan. The lender buys and owns the equipment and then "rents" it to a business at a flat monthly rate for a set number of months. At the end of the lease, the business has several options. It can purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, return it or lease new equipment.

With a lease, you actually only pay for using the equipment. But at the end of the lease period, you could end up owning nothing. So why lease? The answer is simple: By leasing equipment, you leave money in the bank that can be used for other purchases. Since lease payments are usually smaller than regular loan payments, you don't have to pay out as much each month.

However, keep in mind that a lease is not cancelable like a bank loan or other debt. If you need to get out a standard loan you can sell the equipment and pay off the loan, or even refinance it. With a lease, you generally have to pay off the lease in full. So you have to be sure you make the payments when you enter into a lease.

So what kinds of equipment make the most sense for a small business to lease? According to research by the SBA, the most common items leased are office equipment, computers, and trucks and vehicles.

Benefits of Leasing
Leasing equipment offers a wide range of benefits, from consistency with expenses to increased cash flow. But perhaps the most significant advantage of leasing is the ability to maintain up-to-date equipment. Leasing allows you to easily and affordably add equipment or upgrade to a complete new piece of machinery to meet future needs. This lets you transfer the risk of being caught with obsolete equipment to the leasing company.

Here are some other benefits of leasing:

o Alternative to financing - Leasing is essentially an alternative to traditional financing and can be great for companies not able to obtain business loans.

o 100-percent "financing" - In many cases, leasing requires no down payment. This allows you to "finance" an entire purchase, including software, hardware, consulting, maintenance, freight, installation, and training costs.

o Ease and convenience - Applying for a lease is easy, and lease arrangements can be structured to meet your individual requirements. Equipment leases can range from $ 2,000 to $ 2 million. For smaller amounts, you can complete a brief application and receive a final decision within days--often with no financial reports or tax returns needed. Leases for more than $100,000 generally require detailed financial information from the business, and the leasing company conducts a more thorough credit analysis than it would for a smaller

o Flexibility - Lease terms range from 12 to 60 months, depending on the equipment type. Most leases can be structured so that payments are made with operating rather than capital funds. This can eliminate or reduce capital budget delays. Leased equipment can be purchased later if capital becomes available. Plus, a percentage of the lease payments can be credited toward the purchase of the equipment.

o Fixed, predictable payments - Having fixed lease payments enables you to accurately predict the impact of equipment expenses on your cash flow.

o Conserves working capital - Leasing conserves your working capital by requiring only a minimum initial outlay of cash.

o Tax Advantages - Operating leases are generally treated as a 100-percent, tax-deductible business expense paid from pre-tax earnings instead of after-tax profits.

o Protection against inflation - Lease payments are based on the dollar's current value. And unlike bank lines of credit with fluctuating rates, your payments are fixed regardless of what happens to the market tomorrow, making it easier to budget, forecast and grow.

Working with a Leasing Companies
When leasing equipment, keep in mind that the company selling the equipment simply makes a direct referral to a leasing company with which it does business. And, usually, the company selling the equipment works with more than one leasing company. So be sure to get quotes from a number of leasing firms. It's also a good idea to ask for referrals from friends and business associates.

Additionally, make sure you understand with whom you're dealing. Are you talking to a broker--the person who simply structures deals, then gets them financed through any of the leasing companies he or she works with. Or are you dealing with a leasing company that is actually putting its own funds on the line?

Brokers can be beneficial because they have valuable insight about the leasing market and can help you find the best leasing solution for your needs. But as when dealing with any type of salesperson, you are responsible for handling the due diligence. Do your own homework to ensure you negotiate the most favorable lease agreement for your company.

Equipment Leases - Don't Sing Those End of Lease Blues

Leasing is one of many financing tools available to help businesses fill their equipment needs. Leasing allows fixed rate financing and is usually accompanied with little or low up-front costs.

Most surprises, however, come at the end of the lease. By then it is too late to negotiate changes in the lease contract. The lease is "in place"--the customer has been making payments for some time period.

End of lease surprises can easily result in increased fees and automatic renewals.

There are nine things that businesses can do to avoid these surprises and minimize the risk for added costs and renewals.

1. Give Adequate End of Lease Notice: Give the leasing company adequate written end of lease notice. The most common notification period reads "no less than 60 days before the end of the lease." Sometimes notification requirements are as long as nine months before the lease ends.

2. No More--No Less Than: Occasionally, leases say customers must give notice no more than 120 days and no less than 90 days before lease end. The means the customer has only 30 days within which to give notice. Miss giving timely notice and the lease renews automatically with the total lease cost increasing. The automatic renewal adds as much as 12 lease payments.

3. Certified Mail: Send all notices to the leasing company via certified mail. Faxes and emails are not sufficient.

4. Start Early: Begin negotiations well in advance of the return date, especially if you plan to purchase the equipment.

5. Payments Due: Verify the number of remaining end of lease payments using internal company accounting records. Leasing company payoff may vary due to how the leasing company recognizes lease payment timing. Sometimes this happens if late payment penalties are involved.

6. Late Fees: Negotiate all late fees... just because you can and should.

7. Property Taxes: Check property tax assessments on the final invoice. Verify that the charges agree with your state, county and city tax rates. Sometimes tax rate errors are uncovered at the end of the lease. This is the customer's last opportunity to correct errors and receive refunds for tax rate errors.

8. Early Termination: If paying off the lease before the end of the original term, determine if discounts are applicable. Sometimes the lease language provides reasons for discounts. Check the default paragraph, the insurance paragraphs or end of lease section for discount justification.

9. Security Deposits: If the leasing company requires a Security Deposit at lease commencement, make sure the deposit is applied to the final payment or returned to your company at the end of the lease.

Leasing is one of many asset financing options available for companies. Not all leases are alike nor are lease contracts the same. When companies review leases thoroughly and negotiate them aggressively leases are tailored to fit company needs.

If companies do not review and negotiate leases frequently, they might consider retaining the services of an independent lease review specialist. These specialists assist companies in all phases of the lease selection, bidding and negotiation process. Their services save companies hundreds of thousands of dollars on every lease.

All About Coffee Machine and Equipment Leasing

Coffee Machine and Equipment Leasing

I have been a consultant involved in the Coffee World for some years, advising clients and helping them choose the right equipment to suit their needs. Equipment can of course be purchased with good old fashioned cash or a Business Loan from your Bank. However, the latter is not so easy these days. Another alternative that has seen growth in the last few years is Equipment Leasing. Leasing is available in many countries and certain Terms and Conditions vary. Tax benefits that Leasing can bring also vary from country to country. I can only speak from my knowledge of the UK market. I advise clients on many Coffee Machine Leasing packages to suit all their business needs. One thing the client doesn't always realise is that they can add other equipment requirements to their Lease Agreement. For example; Kitchen Equipment, "front of house" equipment and fittings. You name it - It can be Leased.

What is Equipment Leasing?

Equipment Leasing is the process of securing the use of pretty much any type of equipment these days; Office equipment, Computers, various types of machinery. Within the Catering Industry this could mean EVERY piece of equipment used in the kitchen and "front of house". Ovens. Toasting Ovens. Refrigeration. Ovens and Cooking ranges. Deep Fat Fryers, Food processors etc. Front of house equipment would not only include the very important COFFEE MACHINE, but may also include Panini Grills. Counters. Refrigerated Serve Over Counters. Tills. EPOS systems. Leasing can even be used to finance fabrication works, shop fittings, shop furniture, tables and chairs. Even structural building works can be Leased. All these things are needed but cost money, which is not always readily available. Therefore Leasing can provide the financial means to get the right equipment when opening a new coffee shop, restaurant etc. The other benefit is that Leasing can relieve cashflow. For established businesses Leasing can be used to refurbish and replace equipment.

By entering into a Lease contract to utilize equipment for a specified period of time, a business or individual can enjoy the benefits of usage without having the need for a large capital injection of CASH! Many industries make use of equipment leasing. In some instances, choosing to lease necessary equipment and machinery is an ideal situation for new or established businesses with very little working capital. Rather than investing large amount of limited resources, leasing necessary equipment makes it possible to secure more up to date models and focus on the task of growing the business.

The Changing Face of Finance

Equipment leasing and equipment finance has changed greatly in the UK in the last few years. The main change, as many business owners are painfully aware, is the lack of availability of funding and finance from the High Street Banks! Although this situation can also affect Leasing, Lease companies also have access to many other friendly industry capital funders. However, some funders will only finance established businesses. A bit of a "Catch 22" situation. This is not always the case with Leasing. However, you have to find the right Lease Company. Some 75% of all Leases that I have arranged over the last few years have been for "New Start" businesses.

Obtaining conventional Business Loans from the High Street Banks is still not good. A recent report from the Federation of Small Business (2012) stated that 40% of small businesses had been refused credit from their Bank. Also, that Bank lending had fell by some 5%. This is despite calls from the UK Government over the last few years for Banks to increase their lending to business. The Business Secretary stated that Banks were still risk adverse and a constant source of frustration to the Government. However, there could be "light at the end of the tunnel" The Business Secretary announced in September 2012 of the creation of the Government backed "Small Business Bank." The other good news is that Leasing increased during this period. Businesses have turned to Leasing to overcome the lack of Bank lending and been successful.

There are other advantages with Equipment Leasing. It's Tax efficient. Please speak with your Accountant about specific Tax Benefits for your business. Equipment leasing is also an easy way to update equipment. Many lease agreements include provisions that allow older equipment to be exchanged for newer models. This option can be extremely helpful when a business outgrows the capabilities of an older piece of equipment and requires something more robust to keep up with company growth.

Lease Rental - Lease to Buy - Lease Purchase?

A word of warning with the term "rental." Some Lease Companies and Suppliers don't give customers the option to purchase outright. At the end of the Lease period the customer has to renew the Lease for a fixed period of time or give the equipment back to the Lease Company or Supplier. This obviously can create a serious problem. Ensure that suppliers of your equipment and the Lease Company involved give their customers the option to buy outright at the end of the period. This can usually be arranged for just for just one extra months payment in most cases. Other alternatives already mentioned are; half way through a Lease you can upgrade to a new/bigger/better machine, the same as you might do when buying a car. Also, if you wish, you can usually pay off the Lease early with no penalties.

Should You Choose Long Term Car Leasing Or Private Car Leasing?

Generally, most people will choose to have a short term car lease. However, some may want a car for a bit longer and that will lead them to the option of long term car leasing. With long term car leasing, you can lease the car for years, even until you eventually pay it off. This is an option that is favorable to some because many short term lease contracts require the car to go back to the dealership at the end of the lease. What do you do if you want to keep the car then? You can also look at private car leasing, which generally comes in the form of lease swapping or lease transfers, or even sub-leases.

When you sub lease a car, you are leasing a car from someone who is leasing it from a dealership. They may not be able to completely afford the monthly payments, so they offer the sub lease to you to cover the payments and then some. This can be more expensive than leasing from a dealership, but many consumers choose it if they don't have the best of credit. With the sub-lease, they give you a lease for a car that they own. It works for you and it works for them, but make sure it works for the dealership before you begin leasing. The other forms of private car leasing involve you either taking over a lease that is transferred to you by someone else, or swapping a lease with someone who can afford it, while giving you their cheaper lease.

If you want long term car leasing, you get the benefit of lower payments per month, and you get the option of having a car you really like for a longer period of time. If you plan on holding onto a car for several years and even paying it off, then choosing this option is a good idea. There are plenty of good cars to lease on a long term lease, and it all depends on what options you are looking for in your car.

Whether you want to lease short term through private car leasing with sub-leases, lease transfers, or lease swaps, or if you want long term car leasing, there are many places and options to choose from. Maybe you want to go online for a cheaper rate, or maybe you want to shop locally to support local people and businesses. The choice is yours, but take your time in making it.

Executive Car Leasing Advice - How to Get the Best Executive Car Lease

Do you want a really nice car but don't think you can afford it? Do you think you are stuck with a crappy car that barely runs? Think again! You can get a really nice car when you look at executive car leasing and the best car lease deals that are available to you. All it takes is finding good car lease deals for cars that are in the executive class by playing dealerships against each other, or by looking online.

New car leasing deals are not hard to find, all it takes is looking in the right spots for them. For example, you should try looking online for leasing deals. There are many online dealerships that offer excellent deals to those who lease through them. You can even lease some brand new executive cars through online leasers. As well, you can find people who want to transfer a lease to someone else. They can't afford the lease, but you can, so why not take their lease and begin enjoying a new car at a discounted rate?

Another option is to look at dealerships and see what kinds of terms and rates they can offer you on the lease. Then, take that information and see if you can get other dealerships to lower their rates and costs for you. You will be surprised by just how much you can save by doing this. Dealerships don't like it, but there is very little that they can do about it.

So, is leasing a car a good idea? The truth is that whether or not you go for executive car leasing, leasing a car is a good idea. Finding the best car lease deals for that executive vehicle is an even better idea! There are many lease deals out there for you to choose from, but you need to make sure you get the ones that are going to work the best for you. Don't just settle with what you think is the best, because there may be a better one around the corner, or on another website.

Leasing a car is becoming the go-to option for many people in tough economic times. They can get discounted rates, shorter terms and better cars with leasing. Even if they want executive car leasing, they can get it and afford it by finding the best car lease deals online, or in their own city.

Understanding Car Leasing - 5 Facts You Need to Know

Leasing a car is like paying to rent it for a period anywhere from two to four, or sometimes, five years; you get to use it during that time, but you don't own it at the end of the lease.

The main benefit to lease is that your car lease payments will be lower than the payments you would be making if you were to take out a loan to purchase that same vehicle. Leasing can seem very complex and confusing if it's your first time, and all the paperwork the dealership will have for you to sign will not help to ease your anxiety, which is why it's important to understand leasing before jumping into it.

1. One thing to consider is the length of the lease that will be appropriate for you. Car leases require you to make monthly payments for a specified amount of time, which can range anywhere from 24 months up to 60 months.

2. Another thing to consider when thinking about the length of lease that would be best for you is the number of kilometers you will be using. Most leasing companies offer low kilometer leases, standard kilometer leases and high kilometer leases. It is important to do some figuring and find out approximately how many kilometers you will need, because if you end up going over at the end most leasing companies charge anywhere from seven to ten cents per kilometer you go over on the agreement, which can get pricey very quickly.

3. In contrast, if you don't calculate the number of kilometers you are going to be using, you could end up paying too much as your monthly payments will be lower with a low kilometer lease because the residual value at the end of the lease will be higher.

4. You will also want to think about how well you take care of your vehicles when considering leasing. Leasing companies understand that it's normal for a vehicle to show some signs of wear and tear after being used for a few years, but only some not exceeding $1000 or $1500 worth of minor repairs. You are expected to keep the car in good condition, meaning you can't return it with a fender missing and expect to not have to pay for it.

5. You will also want to be clear about your options at the end of the lease. In many cases, you will be told the amount it will cost you to buyout the vehicle at the end of the lease. You will also have the option to simply walk away, or to step up to a new vehicle.

Equipment Leasing Business

The number of aspirants who dream of building their business empires is more now than ever, and rising. However, lack of ample capital is the major hurdle. The equipment leasing business provides a helping hand to such people and those wishing to develop their existing business. The equipment leasing business is a booming field with great prospects.

Equipment leasing business is involved in buying equipments from established manufacturers and other reliable sources and leasing them to customers in need, charging a fixed monthly fee during the period of lease.

Leasing deals with all major business fields ranging from hospitals and hotels to laboratories and other small businesses. By opting for equipment leasing business, you are not required to spend any amount as down payment while buying the equipment.

The various benefits a business can enjoy by opting for equipment leasing include

o Capital conservation - It is always better for one to lease equipment than buying it because of the risk of depreciation.
o Conservation of credit lines - Your purchasing capacity is not affected as there is no initial cost upfront.
o Fixed rate lease payment.
o Deduction of tax - Lease payments don't qualify to be taxed.
o Easy financing of leased equipment.
o Easy updating from obsolete equipment.
o Effective management of your increased business cash flow and no more budget limitations.

As the equipments are leased the burden of maintenance and proper functioning of the equipment is relieved from the shoulders of the business owner, as equipment servicing is also taken care of by the lease firms. Equipment leasing business also helps the client's firm to be equipped with up-to-date equipments which is an important factor for the growth of business. Most equipment leasing firms also provide their clients the opportunity for buying the equipment at the completion of the lease period.

What You Need to Know About Equipment Leases Leasing

Different businesses also have varying needs. However, no matter what your business is, you know that you need transportation so that you would be able to send and receive important materials. Especially for those in the industrial arena, transportation equipment is highly important. You cannot underestimate the need for quality and reliable transport equipments which would help you in handling materials.

Is it always the right thing to buy, or will leases leasing help you save more? There are different factors which would help you decide on which to use.

When you lease transportation equipment, you would be able to get the equipment as soon as possible, without the need to shell out a large amount of money. You can then allocate your funds to other priorities which you need to finance. Most leasing companies include a warranty that removes the responsibility of having to repair the equipment if it breaks down while you are using it. There are a lot of companies that lease their new equipment, so that you are assured of quality and reliability.

You can also look at different providers so that you can decide well about which among those would be highly helpful to you. You can also negotiate your terms with the provider, so that you can maximize the lease contract and minimize the costs you would have to pay.

There are different kinds of transportation equipment which you can use. You can get railroad cars, aircraft, steamships and other types of vehicles. Purchasing these vehicles would simply be too much for you, and would rob you of money which you can use for other things. If you need more than one vehicle, then you would have more problems.

Companies involved in leasing and selling transportation equipment can help you significantly about getting your needed equipment for a very low price. Rest assured that they can provide you with what you need, and can even negotiate with the terms that you can afford. It is important to maintain harmonious working relationships with the company that leases their equipment to you.