|
Big Hairy Dog
Leasing FAQ's
What is the interest
rate on a lease?
The amounts charged on an equipment lease are calculated using monthly "rental
rates", rather than by using a compound interest rate method that is normally
associated with conventional loans. Rental rates are based on the lessor's
ability to effectively manage risk and costs associated with equipment
ownership, while passing on the economic savings to the lessee.
May
the equipment be returned at anytime?
No, the lease is non-cancelable agreement for a specified term that your
customer selects at the beginning of the lease. Leases are available for terms
ranging from 12 to 120 months (depending on equipment type) and can be upgraded
or added on.
What
are the options at the end of the lease?
The end user/lessee may purchase the equipment for its then fair market value
(or such other amount if previously agreed to in writing), continue to lease, or
return the equipment with no further obligation.
Who
is responsible for taxes?
Because this is a "net" lease, the end user/lessee is responsible for taxes. We
are required by law to collect all applicable sales, use and property taxes and
remit them to each state.
Who
insures the equipment?
The lessee is responsible for insuring the equipment against risk of loss
including property and casualty coverage and liability. Lessees typically just
add the equipment to their existing policy, however, insurance may also be
available through the lessor.
Does
it cost anything to apply for a lease?
No, unlike many lending institutions there is no application fee.
Who
provides warranty coverage on the equipment?
We pass through all manufacturer warranty coverage to the lessee. Warranty
claims are processed for the lessee in the same way they would be if the lessee
were the owner of the equipment.
May
non-equipment items such as software and maintenance be included?
Yes. One of the many benefits of leasing includes the ability to "bundle" a
number of equipment items into a lease including software, service and support
costs. This way, a lessee can make one, simple monthly payment for an entire
system or equipment line.
|