Leasing Program
LTL International assists in
obtaining leasing of all equipment it sells if the buyer wishes. Leases are based on
payments over 48 months with either a $1.00 buyout or a Fair Market Value (FMV) buyout
based on 10% of the original purchase price. The table below shows average purchase
costs and payments for both plans.
COST |
FMV (10%) |
$1.00 |
|
Step One |
$ 1,000.00 |
$36.44 |
$ 39.27 |
| CW24/6 | 11,000.00 | 322.78 | 339.55 |
| CW4AF/X | 20,000.00 | 559.57 | 588.34 |
| FAW | 31,000.00 | 861.30 | 905.58 |
Equipment costs depicted are not necessarily accurate to
current pricing. Please contact LTL for current pricing information.
Monthly payments depicted do not necessarily reflect the current interest rates available.
Interest rates vary daily and are also dependent on the financial strength of the
lessor. For a quote, please contact LTL with the list of equipment and options you
wish to purchase.
Examples:
A company wishes to purchase an FAW for
$31,000 but does not have the available assets to purchase the machine directly.
The FAW machine is able to reduce the purchaser's labor force by two
people (who make roughly $7.50/hour each).
Case 1: FMV buyout after 4 years
The FAW lease with the FMV buyout option costs
$861/month.
The labor costs for the personnel the machine
replaces is $2640/month. ($15/hr * 40 hr/wk * 4 wks/month) + 10% for taxes and
benefits
The monthly savings in expenses is
$1,799!!!
At the end of the lease, the
purchaser has the option of purchasing the FAW machine for $3,100. The purchaser
saved this cost in the first
two months of
production, and the expense was deferred for four years.
Case 2: $1.00 buyout after 4 years
The FAW lease with this option is $905 / month.
The labor savings remains the same, and the
monthly savings is $1,735.
At the end of the lease, the lessor purchases
the FAW machine for $1.00.
*** Please Note ***
The figures presented are purely hypothetical.
Please consult your financial advisor or accountant on the actual benefits of leasing
equipment.