An auto lease is like renting a new car every 2 to 3 years and can be a perfect match for some auto enthusiasts. There are some “tricks of the trade” when choosing an auto lease over a purchase. Here’s what you need to know to get an auto lease and make it a rewarding and positive experience.

The first thing you will need to get an auto lease is a decent credit score. Having a credit score of 620 or better will help you get a lower interest rate on the lease. In addition a good credit score will determine how much of a down payment you may need. If you have poor credit it is very difficult to get an auto lease.

The next thing you will need is proof of income. You will want to take a recent check stub as well as a check stub from about 6 months ago. Being prepared with two check stubs will assure the dealership that you have had consistent employment.

Having a consistent residency will also help you in obtaining an auto lease. Bring a current utility bill as well as a cell phone bill to prove your residency. In addition they may ask you on the lease application to give your addresses for the past 5 years.

Bring your driver’s license for identification and social security number. Your social security number will allow the dealership to run a credit report to assure your credit score qualifies for the terms of the lease.

Have proof of insurance. Bring your insurance card and the name of your insurance agent as well as a phone number where the dealership can review the policy. Full coverage will be required to obtain an auto lease.

The next step will be to review the terms of the auto lease. You will want to know the length of the lease. The length of the lease has a big part in determining the amount of your total cost as well as the monthly payments. Typically the average length is between 2 or 3 years.

Another important factor is the mileage allotment you will be allowed per year. If you do not adhere to this mileage limit, you will end up having to pay high fees for your excess miles at the end of your lease. This is where a lease can end up being a bad decision.

Discuss the warranty with the dealership. Be sure to understand the warranty in its entirety so you know what to expect when mechanical issues arise. Make sure the warranty will last the length of your lease term or you may be expected to pay for the repairs and this could add up to a lot of money out of your pocket. You also want to know what you have to pay for when you turn the car in at the end of the lease. Know what your costs are before you sign on the dotted line.

These tips can help you obtain an auto lease with less stress and avoid much regret in the future. Leasing a car allows you to get a new cool car every 2 to 3 years and can be a great option for some drivers.

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To succeed in business these days, you know you need to be able to save as money as you can, in order to make enough to survive until the next year, and beyond. Leasing the equipment you need to run your business is a good start, because it saves you from having to purchase everything from the start. But did you know that there are also some important equipment leasing tax benefits that many business owners overlook every year? In this article, we will show you the difference between leasing options for equipment, as well as tax tips as to which type holds the most benefits for your company.

The Different Types of Lease Agreements Available

There are two basic kinds of business equipment lease agreements that owners can claim as deductions, under the current tax codes. The first and most common in practice today, is the operating lease, which has the intent of only leasing the equipment covered for the length of the lease term. Once the true lease is up, the business owner can either purchase the item at its current market value, or release it back to the leasing company. This type is most often used by owners who want to upgrade their equipment now, but cannot afford to purchase it now. Keep in mind that there is no apparent agreement in play that the equipment will be purchased in the end.

The second type of business equipment lease agreements on the market today is the capital lease, otherwise known as a finance lease. This kind of lease agreement is generally taken out by business owners that need the equipment now, and have every intention of retaining the equipment once the lease is up. It is a means of financing important purchases, without paying the high interest rates other lenders would charge, especially to a brand new business. This type of lease also holds the most tax benefits for the business owner, under the current tax codes.

Section 179 Explained

How the section of the business tax code known as 179 will affect your business’ tax return all depends on how any equipment you wish to claim is listed on your books. The first type of lease, the operating lease, does not qualify for any benefits under S179 because it is a simple rental agreement, limited to a designated term of time and cannot be considered as a purchase under the code because there is no intent to purchase. Therefore, it is usually listed on most company’s books as just that, a short-term operating lease. Under S179, there is no market value listed for the equipment, nor is its depreciation being carried by the lessee, but rather by the leasing firm.

With a capital lease, however, because there is every intention on the part of the lessee to purchase the equipment at the end of the term, it qualifies as a capital purchase under the terms and restrictions spelled out under S179. It allows you to take the purchase price of the equipment off as a tax deduction during the year the lease began, even though you have not spent the full amount as yet. Under the tax code, you can lease-purchase up to $250,000 worth of operating equipment, not have to pay for it up front, and still be able to claim the full amount as a tax deduction. In most cases, the tax savings for the first year alone should exceed the total amount of the lease’s payments per month for the first year. An excellent way to boost your cash flow and profits.

How to Take Advantage of It

You can claim any capital lease equipment on your taxes as long as it is done by December 31st. This includes any business-related tangible goods, like production machinery, computers, office equipment, and even vehicles. The total, under S179, cannot exceed $800,000, in order to qualify for the maximum equipment leasing tax benefits of $250,000. If you go over, then the deduction will be decreased by the difference, dollar by dollar. Your leasing agent should provide you with a copy of the tax schedule when negotiating your lease, so you can see the benefits up front.

Curious as to whether there are any equipment leasing tax benefits you might qualify for? The seasoned professionals at Article Source

What is an equipment lease and what will it do for my business? An equipment lease is simply a long-term agreement to rent equipment. You maintain the equipment and the lease term usually does not exceed the life of the equipment. At the end of the lease term, you turn the equipment back over to the company which originally leased it to you. But in the meantime, you’ve enjoyed the use of newer equipment to grow your business without having to raise a down payment that would have been required if you tried to purchase equipment. Best of all, you are not stuck with obsolete equipment.

When the average person thinks about equipment leasing, what typically comes to mind is building cranes, dump trucks and tractor trailers. Equipment leasing is much broader than that; what can be leased has expanded considerably. For instance, leases are available for:

• Furnishings and equipment for doctors’ offices and medical facilities
• Office furnishings, including computers
• Restaurant furnishings for front and back of the house, practically turn-key
• Church furnishings
• Agricultural machinery
• Trucks and commercial vehicles
• Road-building equipment
• Construction equipment, including office trailers

Leasing is one of the fastest growing ways to acquire equipment. Companies ranging from Fortune 500 to family businesses lease a portion of their equipment. Businesses often have limited cash flow but still find themselves needing to add equipment. Let’s look more closely at the five ways leasing helps your cash flow:

• Low monthly payments: Monthly lease payments are usually lower than periodic payments required when purchasing outright.
• No down payment: Keep your cash for unexpected expenses or working capital.
• Low up front costs: Most leases require only one or two payments up front vs 25% down payment to purchase equipment.
• Fixed payments during lease term: Bank credit lines usually have a variable interest rate. Fixed lease payments are a predictable budget item for your business.
• Tax and accounting advantages: No depreciation schedule needed. Lease payments are line item expenses that can usually be treated as pre-tax expenses which can help you reduce your taxes.

Other advantages to leasing include:

• Preserving your existing credit lines: Leasing has no major impact on your bank credit lines
• Eliminating obsolescence in your equipment: Technology marches on. What is state of the art today will be totally obsolete in a few years. Leasing gives you today’s best technology while allowing you to upgrade your equipment and use the newest technology
• Growing your business by bidding on bigger projects: Leasing your equipment frees up your capital to use on incidental expenses needed to complete the larger project.

If your company has been in business for at least 2 years, you can expect approval in about 24 hours for up to $250,000 without providing financials. For amounts over $250,000, approval can take 3 – 5 days. Financials may be required. In most cases, you can expect up to 84 months to repay.

Here are some of the services a full-service equipment leasing service should offer:

• Straight leases where you use and take care of the equipment and return the equipment in serviceable condition at the end of the lease term
• Sale and leaseback where the equity in your existing equipment is used to give your business needed working capital
• Programs to lease to state and federally controlled entities such as public schools, police departments and fire houses as well as the military
• “Second Chance” programs for business owners with B, C, and D credit to help owners of companies who have damaged their personal credit, trying to survive in these tough, economic times
• Special leasing programs for start-up businesses or for companies in business for less than 2 years

So…..were you unable to bid on a larger job because you didn’t have the right equipment? Do you need equipment but can’t afford a down payment? Had you hoped to expand your business without depleting your capital or credit lines? You can have the right equipment for the job without being stuck with obsolete equipment. You can get equipment without that 25% downpayment. You don’t have to deplete your capital or credit lines. Lease that equipment!

My name is CeeJay. I wrote this article to explain how leasing equipment helps business cash flow and allows you to grow your business. My website is http://latexllc2businessservices.com. Leasing your equipment lets you bid on larger projects to expand your business, gives you the use of up to date equipment without depleting your capital or credit lines and is treated as a business expense for tax purposes. Please visit the Services Section of my site, then see Sub-section Equipment Leasing on my site http://latexllc2businessservices.com.
Email me your particulars so I can refer you to a service provider. There is no cost to you for my referral services.

John Siegler is a co-founder and CFO of Practice Technologies, Inc., creator of RealDealDocs.com. RealDealDocs.com gives you insider access to legal documents drafted by top Lawyers in the US. Search over 10 million documents and clauses for Free at http://www.RealDealDocs.com.

Some lessees often decide that they would like to get out of their car lease or end their car lease early for multiple different reasons. Whether you want to end your car lease due to financial problems, unemployment, high payments, or simply because you no longer wish to drive the car you were leasing, it is quite possible to terminate your car lease prior to its maturity date.

Most car leasing contracts have multiple paragraphs of legal jargon dedicated to explaining your options should you wish to perform what is called an “early termination.” As per a written contract, some leasing companies or finance companies even allow you to terminate your car lease at any time throughout the term of your lease.

You should understand, however, that early termination isn’t something that your lessor or finance company is too fond of. You see, they would rather lease a car out to someone who can continually make the payments until the end of the lease.

In this article, we look at 5 different options you have to get out of your car lease early. These options are to payoff your car, sell your car, trade in your car, voluntarily return your car, or have someone else take over your car lease.

Payoff Your Car

Paying off your car allows you to end your lease early and become the owner or title holder of your vehicle. Most finance companies list your payoff amount on your monthly bill and give you the option of sending them a check for the payoff amount instead of sending them your monthly lease payment. This option can be pricey since your payoff amount will in most cases be higher than the actual value of your car.

Sell Your Car

Selling your leased car requires that you first own the car. Here, you would first payoff the car and then subsequently find an interested buyer to sell your car to. This option is pretty unwise for the simple reason that you may have to sell the car for less than the payoff amount in order to find an interested buyer. You may lose several thousand dollars doing so.

Trade in Your Car

You can also trade in your car and then lease or finance the purchase of a new car. This option only makes sense if your car has “positive equity.” This means that the value of your car is higher than the payoff amount. If this happens to be the case, you can trade in your old car and obtain a lease deal with reduced monthly payments.

Voluntary Return

With a voluntary return you return your car to the dealership. Because you are not keeping the car, you are not responsible for paying off the vehicle. However, you are responsible for paying the price difference between what the leasing company can sell the vehicle for and what the payoff amount was at the time of your turn in.

Lease Assumption

With a lease assumption, another interested party takes over your auto lease and becomes responsible for making your payments until the lease maturity date. This is the simplest and cheapest option. You should use companies like SwapaLease or LeaseTrader to help assist in the lease transfer.

TheCarLeaseGuide.com is a personalized Car Lease Guide that will provide you with free tips and tricks for obtaining the best deal possible.

For a new business, trying to get a bank loan can be a challenge especially without business credit history to back up your loan application. If you need equipment financing an issue, perhaps you may consider business equipment leasing?

Who Can Lease

Both new and established businesses are eligible to apply for equipment lease financing. In fact, this financing technique has been employed by many small businesses and large corporations for a long time.

Why Lease Equipment

Rather than apply for a bank loan to buy the needed equipment, a new business owner can apply for a “lease” to avoid unnecessary delays with the business operations. Instead of waiting for months to get their business loan approved, leasing equipment involves a quicker and uncomplicated procedure.

Add to this, equipment lease financing is generally cheaper since it does not require a down payment. Many leasing companies offer flexible repayment terms (monthly, quarterly, bi-annual, annually) to complement the business’s needs.

Indeed, equipment lease financing is recommended for smaller businesses. By leasing equipment, the business owner can use its working capital on other expenditures such as purchasing supplies, hiring workers, advertising your products and services, instead of spending the money on devices or special machines.

Preparing Paperwork

What kind of paperwork do you need to prepare? The specific requirements may vary from one leasing firm to the next. Still, most lessors generally require a written equipment lease proposal, the business’s recent financial statements, and tax returns.

Your lease proposal must clearly present the type of business you run, your reason for getting a lease, the specific machines or devices you need, and other important information about your company that will help convince your lessor to approve your application.

Check Your Credit

Some business equipment lease providers have strict standards and may call for good to excellent credit history. Nonetheless, you can find lessors that offer leasing services even for customers with no credit history or with bad credit history.

In fact, even business owners who have a record of bankruptcy can get approved as long as the bankruptcy has been discharged. If you have bad credit, it is a good idea to include a letter explaining the details about your bankruptcy or poor credit.

Tips For Sure Approval

For new business owners, do not test the waters by submitting multiple lease applications to different companies. If a potential lessor sees too many inquiries in your report, it may raise doubt as to why other lessors are not willing to grant you a lease.

Keep in mind that not all leasing companies offer lease for new businesses. Some lessors may require applicants to be at least 2 years in operations. However, there are lease companies that do offer special lease arrangements for new businesses.

Find a leasing company that provides service to businesses in the market you belong. For example, some lessors specialize in transportation while others may specialize in medical equipment, printing equipment, baking equipment, etc. Check the prerequisites of a particular equipment lease provider so you can avoid unnecessary rejection.

Lai Castillo is an equipment leasing broker that specializes in getting startup business equipment lease.