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Lease of Construction Equipment

How can one lease the construction equipments for your benefit?

It is no hidden fact that the construction equipments are one of the very costly items in the world. The construction equipments are used in a very rough way and tend to become more and more worn out after each use. This is also the reason for the depreciation of the price of these equipments as they become older. Many companies have known this fact and therefore instead of buying new equipment each time they have started lease of the construction equipment.

Instead of buying the equipment for cash or bearing the load of a business loan the companies have started to pt for financing their equipments in the following ways

Fair market value lease:

This option is one of the most commonly opted for because at the end of the lease agreement there are many options in front of the lessee

  • He can return the equipment
  • He can renew the lease agreement
  • He can purchase the equipment

Dollar buyout lease:

When the lease is at conclusion the lessee can buy the equipment for one dollar only. This is opted by those who want to retain the equipment after their work is over. This is beneficial for those general contractors who need the equipment for long periods of time and at the need of the lease would like to purchase the equipment.

Wrap lease:

The lessees who are planning on leasing new equipments can opt for this lease.

Refinance program and sale lease back are other options when it comes to lease of construction equipment.

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