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Interest rate

Discussion in 'Lease Purchase Trucking Forum' started by rocknroll81, May 3, 2014.

  1. May 3, 2014 #1
    rocknroll81

    rocknroll81 Road Train Member

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    What is an average interest rate on a lease, no money down or with a down payment......
     
    rocknroll81, May 3, 2014
    rocknroll81, May 3, 2014
    #1
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  3. May 3, 2014 #2
    Dr_Fandango44

    Dr_Fandango44 Road Train Member

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    They don't term it an interest rate but a "factor" it's a percentage of the cap cost.
    A good source to figure it out is to get in touch with the big banks like Wells Fargo. As they do leases on big trucks.
    They can enlighten you on that issue.
    Good luck
     
    Dr_Fandango44, May 3, 2014
    Dr_Fandango44, May 3, 2014
    #2
    rocknroll81 Thanks this.
  4. May 4, 2014 #3
    TennMan

    TennMan Road Train Member

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    In a lease it's actually just rent and you pay no interest. You pay a flat amount that is 100% deductible at tax time. As far as down payment it has no bearing since there's no interest but it does lower the total of the overall rent note so should lower the payments.
     
    TennMan, May 4, 2014
    TennMan, May 4, 2014
    #3
    rocknroll81 Thanks this.
  5. May 4, 2014 #4
    rocknroll81

    rocknroll81 Road Train Member

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    Thanks to Dr_Fandango44 and TennMan, I used the term interest because I never looked into a lease purchase and the company that I work for I found out that they have that, talked to management and said that the lease was what the cost of the truck was times 11% interest for a 4 year term and that was your weekly payment. It seems that 11% is high but it's also at a no money down, you can put a down payment but never asked if it would bring the so called interest down....
     
    rocknroll81, May 4, 2014
    rocknroll81, May 4, 2014
    #4
  7. May 4, 2014 #5
    Dr_Fandango44

    Dr_Fandango44 Road Train Member

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    Well, if you're saying that a lease is " interest free" then I will politely disagree. It's just that a lease has totally different terminology from a bank loan. Cap cost, cap reduction, factor, residual are all there to bamboozle you when you take on a lease. There's interest on a lease, they just call it differently.
    but it doesn't stop you negotiating the best cash discount you can find on a lease.
     
    Dr_Fandango44, May 4, 2014
    Dr_Fandango44, May 4, 2014
    #5
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