Leasing is an alternative to paying for equipment with cash, credit, or a loan. Leases are comparable to a rental agreement, where the Contractor or user pays a monthly fee for a specified amount of time, in exchange for the use of the equipment.
By default, at the end of a lease the Contractor will return the Equipment to North Star Capital and has the option to roll any residual value into a new lease. This allows the contractor to receive updated equipment every 3-4 years and not worry about aging equipment, used sales, or high-cost repairs.
Unlike traditional financing, lease contracts do not show an APR or other direct interest rates. The monthly payment is simply set by the lease contract, which takes into consideration future residual value, lease term, fees, and any other applicable charges or credits.
No, leases cannot be refinanced the way that a loan might. If you are trying to lower your monthly payment, contact us to learn about your options.
Yes, in some instances, Contractors can trade-in old equipment towards the value of new equipment. Contact us if you have a trade-in available.
Residual Value is a a term that defines the "value" of the Equipment after a certain number of years, usage hours, or another factor. A lease will typically structure payments based on the expected Residual Value at the end of the lease term, which in most instances lead to lower monthly payments.
Because ownership looks different under a lease, Contractor is required to maintain a certain level of insurance, and may require the Contractor agrees to terms around how the equipment is used and maintained. These terms are fully outlined in the Lease Agreement.