When you are purchasing a significant item like an MOT bay you will usually be offered a lease option to pay for that purchase. Often making the acquisition using a lease is the best way to buy and although some individuals do not usually finance anything (usually because they are worried about the APR and how much the equipment will actually cost on a finance agreement) most realise that opting for a capital equipment lease means that they can select the equipment they prefer, which might have the best warranty, service back-up or features – rather than the equipment they can afford to pay for today which might only partly meets the businesses needs.
There is no beating about the bush in terms of the answers to which option to consider outside of a cash purchase. Hands down the best option is the “lease hire”.
Naturally, some will immediately be concerned that a hire means that you never own the equipment; but this is simply not the case. In a lease hire situation we work off a “zero deposit” situation (which is better than a lease purchase where the VAT on the total invoice amount is payable at the start of the term) and the equipment cost is divided over a number of months – normally 3 years (36 months) or 60 months etc. and an equal fixed repayment is made every month until the end of that term.
In order to own the equipment outright the original funder normally asks for one more payment to be made, and a transfer of the ownership is then made.
In order to apply for such finance, there are few limitations. Obviously a clean financial record is essential if you are going to be passed off with the best funders (those who offer the best rates) but being a homeowner also helps. The homeowner status is desirable not because it ties your premises into the deal, but it shows a fixed location (i.e you are stable and will be on the local registers) and some financial history of repayment. If you can tick both of the above criteria then you have a very high likelihood of being accepted for the finance deal you need.
If you are fortunate to be “cash rich” or prefer normally to pay outright for your purchases then opting for a finance lease rather than a cash deal also offers you the use of that cash to invest in other areas of the business, and spreading the costs also offers tax benefits as equipment purchased on a lease does not depreciate over time as it would do with an outright purchase – this means that for the entire term full tax relief can be claimed.
If you are looking to invest in MOT Garage Equipment then we offer a comprehensive range of MOT equipment to cover all vehicle classes and the nationwide service back-up you would expect from a manufacturer. Call 0844 800 9785 to speak to our equipment and finance specialists today.