Tyre Changer rental from Tyre Stuff
Leasing / renting tyre changers and wheel balancers is a common way to get the best equipment in your garage with minimal initial outlay.
We find that the same questions come up time and again, which is why we decided to do our latest blog on Tyre Equipment finance. If, however you don’t find the answer you are looking for please feel free to contact us and we will be happy to answer any and all of your questions regarding leasing for new and used equipment.
Should I pay cash or lease my tyre equipment?
You may be able to afford to buy the equipment outright, but before you make this decision you must consider the following:
- All leasing payments are rental payments and as such are an allowable business expense, therefore if a business is making money the profit can be reduced by the amount of the rentals you pay each year, which in turn reduces your tax bill.
- Payments are the same throughout the lease contract. This means that increases in interest rates do not affect you and your cash budget can be utilised more effectively.
- Leasing enables you to protect your cash to use for other needs such as new stock, staff training, advertising, new business opportunities and unexpected expenses.
Do my payments increase if inflation or interest rates rise?
Simply put, no, they don’t. Your monthly payment is fixed at the start of the lease and so is unaffected by interest rate rises. You can budget your cash flow more accurately. As inflation rises, because your payments are fixed, the cost of the equipment reduces in real terms.
What does leasing my tyre equipment mean?
- A lease agreement for new or used Tyre machinery is a contract between you, ‘the customer’, and a leasing company. This enables you to have and use a piece of equipment over a period of time on payment of rentals to the leasing company.
- With a typical lease agreement, you make a series of regular payments (usually on a monthly basis), thus helping cash flow, as opposed to a large capital outlay for the equipment.
- You won’t have a depreciating asset on your books, and can benefit from the tax advantages of paying a lease rental.
- At the end of the agreed payment period, the tyre equipment is yours on transfer of the title. The cost for this is normally one extra monthly payment.
Will I need to find a hefty deposit?
- A nominal amount (normally the equivalent of 1 monthly payment) is generally all that is needed in advance of a lease agreement. You can put don larger deposits to reduce your monthly payments.
- This small cash outlay means you can have the latest technology and start to enjoy the extra profits this generates before your next lease payment is due.
- The full invoice amount is settled with the supplier upon the equipment being installed or delivered to your satisfaction. Your payments don’t start until you have your new tyre changer / wheel balancer.
You can apply directly online for finance approval or give us a call and we can talk you through the options and help you find the best deal to suit your business.
www.tyrestuff.co.uk or call us on 0800 124 4340