WRITE A LEASE THAT WORKS FOR YOU

ALL THE AVAILABLE CHOICES OPEN TO RENTERS AND/OR LEASERS OF CONSTRUCTION EQUIPMENT ARE DISCUSSED IN TERMS OF TYPICAL SITUATIONS THAT MIGHT ARISE. FOR INSTANCE, IF MAINTENANCE IS TO BE HANDLED SEPARATELY THIS SHOULD BE SPELLED OUT UNDER A "WET" LEASE CLAUSE. SHOULD THE EQUIPMENT BECOME OBSOLETE BEFORE THE LEASE EXPIRES A CANCELLATION CLAUSE, WHICH SHOULD BE CAREFULLY NEGOTIATED PRIOR TO SIGNING THE LEASE, OUGHT TO BE INCLUDED. SHOULD THE DESIRE TO BUY THE EQUIPMENT BE EXPRESSED, THIS TOO SHOULD BE REQUESTED IN A FULL-PAYOUT CONTRACT WITH AN OPTION TO BUY. LIKEWISE SHOULD USED EQUIPMENT BE DESIRED THEN (1) SECOND-HAND EQUIPMENT SHOULD BE SPECIFIED, (2) LEASED EQUIPMENT CAN BE TRADED AT THE EXPIRATION OF EACH LEASE FOR COMPARABLE NEW EQUIPMENT, (3) A VERY HIGH PURCHASE OPTION CAN BE AGREED UPON, AND (4) THE EQUIPMENT CAN BE LEASED FROM THE DISTRIBUTOR ON A NON-FULL-PAYOUT BASIS. SHOULD CASH BE QUICKLY NEEDED, SELL SOME EQUIPMENT TO A LEASING FIRM AND THEN LEASE THE SAME EQUIPMENT FROM THE SAME FIRM ON A FULLY-PAYOUT BASIS ON THE REMAINING VALUE OF THE EQUIPMENT. SHOULD THE WORK BE SEASONAL THEN, IF POSSIBLE, ARRANGE WITH THE LEASING FIRM FOR THE MONTHLY PAYMENTS NOT TO BE MADE DURING THE MONTHS WHEN NO WORK IS DONE. SHOULD OUTRIGHT OWNERSHIP BE DESIRED, ALTHOUGH THE FINANCIAL SITUATION MIGHT BE SUCH THAT IT IS NOT POSSIBLE, THEN LEASE THE EQUIPMENT WITH AN EARLY TERMINATION OPTION. SHOULD A TAX ADVANTAGE BE REQUIRED, DO NOT BECOME AN OWNER, INSTEAD INSERT A RENEWAL CLAUSE INTO THE LEASE.

• Publication Date: 1973-6

Media Info

• Features: Photos;
• Pagination: p. 60-4
• Serial:
  • Construction Equipment
  • Volume: 47
  • Issue Number: 7

Subject/Index Terms

• TRT Terms: Construction equipment; Contracts; Costs; Equipment; Equipment leasing and rental businesses; Equipment maintenance; Equipment replacement; Leasing; Operating costs; Ownership, leasing and rental; Seasons; Taxation
• Uncontrolled Terms: Obsolete equipment
• Old TRIS Terms: Equipment cost
• Subject Areas: Administration and Management; Finance; Highways; Maintenance and Preservation;

Filing Info

• Accession Number: 00219110
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 11 1973 12:00AM