How to Save Money on Your 2019 Equipment Purchase by Financing with Altec Capital

Have you had your eye on a piece of Altec equipment but decided to wait until next year to purchase it? To maximize savings and close out the year on a high note, consider buying now and financing through Altec Capital. When financing equipment during the 4th quarter, Section 179 and Bonus Depreciation are options that help leasees save money through increased tax benefits.

With an Altec Capital Lease, businesses are able to deduct 100% of the cost of certain assets in the first year of purchase for tax purposes.

Whether it’s a tax deduction or a lease, our knowledgeable finance experts are ready to help you and your business find the best options to achieve significant savings.

What type of lease is best for me?

TRAC Lease

This type of lease allows for all of the advantages of leasing while retaining the option to purchase the equipment at the end of the lease term for a pre-determined balloon payment, called a terminal rental adjustment clause (TRAC). TRAC leases are popular with companies that want lower monthly payments but desire the benefits of ownership at lease maturity. The TRAC lease has lower monthly payments than traditional finance options due to depreciation benefits retained by Altec Capital. These benefits are passed on to the customer in the form of a lower payment compared to traditional loans.

Benefits:
• Improved cash flow
• Lower monthly payments
• Limited upfront costs

Fair Market Value Lease (FMV)
An FMV lease minimizes equipment lifecycle costs and maximizes equipment utilization. This lease is ideal for companies that desire the latest technology and equipment on the market. The FMV is essentially a long-term usage agreement with terms ranging from 3-10 years.
Benefits:
• Typically has the lowest monthly payment
• Provides terms to match needs and lifecycle objectives
• Conserves working capital
• Eliminates end of lease risks
• Can have significant tax advantages

Eric Bishop, Altec Capital Eastern Regional Manager, says looking at lease types and tax deductions are a great way for customers to cut down on the overall cost of financing a piece of equipment.

“Our team at Altec Capital wants to make sure our customers take advantage of every opportunity to save money,” Bishop said.

Using a tax lease in the 4th quarter is a great way to take advantage of the best rates of the year from Altec Capital. These favorable depreciation deductions will deliver tax-saving benefits to many businesses in 2019. Please note that all qualifying assets will need to be financed and placed in service by December 31.

Call (888) 408-8148 or email finance@altec.com if you have any questions about Altec Capital lease options or 4th quarter tax benefits.