Questions to Ask About A Specific Proposal ...
- How much is the payment?” This does not usually include tax.
- What is the term / how many payments? Generally 12-60 months
- How many payments in advance? Usually one or two – sometimes (especially for new companies) a down payment of 10% of cost + 1 payment in advance.
- Are there any other fees? $200 is common as a document fee – sometimes a little less – titled vehicles could have as much as $500 in associated fees
- What happens at the end of the lease?
- $1.00 buyout is most common (you own the equipment after making the final payment)
- 10% purchase option (10% of original cost is paid at lease end) – sometimes called a PUT for “payment upon termination” which usually not always optional
- FMV or Fair Market Value – these create most frustration at end of term – we rarely offer this option
- KMC can offer up to 30% residuals on some equipment – the higher residual reduces monthly payments, but increases total cost
Cautions …
“YOU’RE PRE-APPROVED” is almost never true – it usually means, “you’re on a list” – same as credit card offers. You’ll know this because they’ll still need to check credit references they don’t already have.
This doesn’t mean they can’t help, but most horror stories we’ve heard began with “You’re Pre-approved”. Just be sure to call at least one other company before you proceed.
Finally … don’t send funds before being approved. Unless you have troubled credit (or are in a tough industry – such as restaurant or trucking), which can mean a lot of extra work to get an approval. Most often, funds will be returned if you don’t get an approval. KMC never asks for funds in advance.
KMC
Financial
"Good
people, straight talk, prompt action"
Office 503.293.5447 Fax 503.345.8578
e-mail: info@kmcfinancial.com |
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