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financingLease Or Purchase

Financing options can be confusing, but at Power Motive Corporation we try to offer simple, straightforward solutions that address your most pressing issues. If you’re asking yourself “How much will it cost?” and “What is the monthly payment?” you are not alone. This page is here to address some of your most basic questions. Unlike most heavy equipment dealers, Power Motive Corporation offers a wide range of financing and lease programs for all new and pre-owned equipment, for all makes and models, and can even include RAMP and PM contracts in your lease or finance payments.


Everyone has a different need, a different perspective, and different expectations during the equipment acquisition process. At Power Motive Corporation, we strive to be flexible and find the solution that works best for you including fully customized purchase/lease plans that will minimize impact on your balance sheet. Finding the right machine may be important, but it may be equally important to find a flexible solution to finance your purchase.


Unlike most heavy equipment, Power Motive Corporation offers a wide range of financing and lease programs for all new and used equipment, for all makes and models.


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Finance Options

There are several ways in which you might acquire a machine. What follows is an overview and explanation of the terms and conditions that may affect your buying decision. Leasing provides you the use of equipment for a specified period of time with a possible option to buy at the end of the lease term. From an accounting standpoint, there are two types of leases: a capital lease and an operating lease.


Capital lease – A capital lease meets one or more of the four criteria of the Financial Accounting Standards Board (FASB) No. 13:

  1.  A capital lease can have a purchase option price that can range from $1.00 to an amount below the expected fair market value.

  2.  A lease in which 90% of the cost of the equipment would also qualify as a capital lease, regardless of the purchase option.

  3.  A capital lease is a finance lease, which means that for you it represents nominal ownership. The cost of the equipment and the lease obligation must appear on your balance sheet.

  4.  Taxes are also paid monthly on each lease payment.


Operating Lease – An operating lease must not meet any of the criteria for the above-mentioned FASB No. 13. An operating lease is structured so that you can use the machine for the terms of the lease with an option to:

An operating lease is basically a long-term rental in which you can use the machine without the risks or benefits of ownership. For accounting purposes, these types of leases are usually treated as “off balance” sheet.


In addition to leasing, PMC offers other avenues to equipment financing and ownership: Custom 'Black Label' Lease - a highly personalized program that includes more aggressive rates and application of rental equity along with significant balance sheet advantages:


Conditional Sales Contract – A conditional sales contract is the more traditional form of equipment acquisition. Typically this medium is based on:


Often times skip payments, accelerated payments, balloon payments, and quarterly/semi-annual/annual payments, in addition to trade-ins, would be handled through a conditional sales contract. A conditional sales contract builds equity faster and normally will be the low-cost means of acquiring equipment over the full term of the contract as compared to a lease.


As a part of, or an addendum to, any lease or conditional sales contract, there may be the need to acquire a Repair and Maintenance Agreement (RAMP) or PM contract. While this may not affect the classification of a lease for accounting purposes, it could have a positive impact on a higher residual value of the equipment. If a Total Maintenance and Repair Agreement or PM Contract fits your needs, please ask our financial representative to discuss and quote an all-inclusive Agreement that fits your needs.


A UCC (Uniform Commercial Code) will be required for any Lease and or Conditional Sales Contract. The UCC is the "law of the land" for obtaining a first priority lien position on equipment that is taken as security under either financing agreement.


We look forward to serving your equipment and financial needs.


Please call us at 303-355-5900 with any of your financial needs.

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